Domestic ferrous scrap prices in most Asian markets recorded a steep rise this week on the back of strong global cues and economic activities picking up pace. COVID-19 related shutdowns had kept trades slow for the past few months.
Chinese steelmakers continued importing billets and raised their HRC exports prices. HRC prices were also increased to absorb the impact of bullish iron ore prices amid supply concerns as Vale suspends activity at Itibara mine in Brazil due to the pandemic.
Japan’s domestic ferrous scrap prices rose fuelled by limited supply. Suppliers are waiting for the Kanto Tetsugen tender scheduled to be announced on June 10 for a price direction. Tokyo Steel raised its bids for domestic scrap delivered to Utsunomiya and Takamatsu steel centre by JPY1,500/mt effective June 9. Bids for scrap delivered to other works increased by JPY1,000/mt. The mill’s purchase prices for #2 HMS were at JPY24,500/mt ($194/mt) delivered Utsunomiya plant in Kanto region, JPY23,500/mt delivered Kyushu and JPY22,000/mt delivered Okayama plant. Bids for busheling by Tokyo steel’s Tahara and Utsunomiya plants are at JPY27,000/mt and JPY26,500/mt, respectively.
In the export market, Japanese #2 HMS was offered at JPY25,500-26,000/mt fob Japan, up by JPY1,000/mt from the prior week.
Mills since last week have resumed domestic ferrous scrap purchases even though prices increased from two weeks ago. Prices increased for a second successive week. Scrap inventories with major mills declined with a rise in finished steel demand from overseas markets. Steelmakers including Dongkuk, SeAH, YK, Daehan, Hyundai Steel have raised domestic scrap purchase prices by KRW10,000-15,000/mt del plant.
The weekly Davis Index for domestic Heavy A settled at KRW315,000/mt ($262/mt) del Incheon, up by KRW25,000/mt, from the prior Tuesday.
The Davis Index for Heavy A settled at KRW300,000/mt del Pohang, up by KRW17,500/mt from the prior Tuesday. The weekly Davis Index for domestic Light A settled at KRW275,000/mt delivered Pohang plant, up KRW22,500/mt.
Domestic ferrous scrap prices in the country rose by NT$200-400/mt from the prior week in line with increased imported scrap offers. Scrap demand picked up on the back of increased billet bookings by Southeast Asian mills.
The weekly Davis Index for domestic HMS 1&2 (80:20) in south Taiwan settled at NT$7,200/mt ($242/mt) del plant, up by NT$300/mt from the prior Tuesday. The weekly index for HMS 1&2 (80:20) in North Taiwan settled at NT$7,500/mt del plant, up by NT$200/mt from the prior week. Despite an uptick in demand, limited trades reported due to the ongoing rainy season in Taiwan.
In South Taiwan, Feng Hsin Steel hiked domestic ferrous scrap purchase prices for HMS 1&2 (80:20) by NT$300/mt to NT$7,100/mt delivered Taichung plant from the prior Tuesday. The steelmaker’s base offers for rebar were at NT$13,800-14,000/mt ex-plant.
A few mills in the Northern region raised finished steel offers due to an increase in global scrap prices.
In seaborne trades, US-origin containerised HMS 1&2 (80:20) traded at $240-242/mt cfr Taiwan late last week. Offers then rose to $245-250/mt cfr Taiwan on Tuesday.
Japanese small bulk ferrous scrap prices increased by JPY1,500-2,000/mt from the prior week. Supply crunch pushed prices up in the both, domestic and export markets.
The Davis Index for HMS 1&2 (80:20) settled at VND6,100,000/mt ($262/mt) delivered South Vietnam inclusive of taxes, up by VND50,000/mt from the prior week. Trades for domestic scrap were thin. Mills also slowed purchases of Japanese ferrous scrap, prices for which have increased.
In China, Shagang Steel headquartered in Zhangjiagang, Jiangsu province, raised bids for steel scrap by CNY80/mt late last week. Revised bids for domestic #2 HMS (6-10mm thickness) on Tuesday was at CNY2,610/mt del Jiangsu plant inclusive of the 13pc VAT.
The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,625/mt ($370/mt) inclusive of 13pc vat delivered to mill in eastern China, up by CNY25/mt.
In the domestic market, prices for billet remained at CNY3,330/mt ex-Tangshan mill on Tuesday. However, rebar and HRC export prices from China increased driven by rising iron ore import prices on fears of supply disruption and higher steel futures.
The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB8,500/mt ($271/mt) delivered Rayong inclusive of taxes, up by THB700/mt. The rise was on the back of increased billet prices and limited availability of ferrous scrap in the domestic market.
Offers for imported busheling were heard at $290-295/mt cfr Laem Chabang with no buyers at those levels.
The weekly Davis Index for domestic HMS 1&2 (80:20) settled at MYR975/mt ($228/mt) delivered western mills, up by MYR45/mt and the index for HMS 1&2 (80:20) delivered eastern mills settled at MYR1010/mt inclusive of taxes, up by $40/mt from the prior week.
($1= JPY107.93; TWD29.74; CNY7.08; THB31.35; MYR4.28; VND23,265.5; KRW1,200.5)