In the containers market, the weekly index for HMS1&2 (80:20) rose by $13/mt to $259/mt cfr. The weekly index for P&S 5ft increased by $13/mt to $294/mt cfr, while the index for shredded rose by $5/mt to $281/mt cfr. Buyers in the country mainly focussed on bulk bookings.
In the bulk market, an unconfirmed deal was heard for 30,000mt of mixed scrap from the US, including 4,000mt HMS 1&2 (80:20) at $295/mt, 22,000mt shredded at $281/mt and 4,000mt P&S at $302/mt cfr Vietnam. Deals for Japanese busheling were at $302/mt cfr and P&S 5ft at $290/mt cfr.
Offers for Japanese-origin HMS 1&2(50:50) were at $285/mt cfr Vietnam and shredded at $303/mt cfr. These offers were at least $10/mt above last week’s price levels. Scrap grade #1busheling (shindachi) was offered at $303-308/mt with bids at $300/mt cfr.
A shortage of domestic scrap and an anticipated surge in demand for finished steel in September, has given demand a push.
The Davis Index for containerized US-origin HMS 1&2 (80:20) fell by $1/mt from the prior day to $255/mt cfr Taiwan with offers at $253-258/mt cfr. The index, however, was up by $7/mt from the last Thursday.
Demand for finished steel continues to be under pressure and importers booked limited volumes. Turkish prices rose again and the Davis Index for US-origin HMS 1&2 (80:20) increased by over $2/mt in a week. Market participants are expecting a further rise in offers amid increased buying in Southeast Asian countries.
Taiwanese mills bought South American HMS 1&2 (80:20) in limited quantities this week at $245/mt cfr, while deals for Australia HMS 1&2 (80:20) were at $250/mt cfr. Trades for the grade from the US were at $253-257/mt cfr.
The weekly Davis index for containerized #1HMS and P&S 5ft settled at $261/mt cfr and $276/mt cfr Taiwan, respectively, both up by $6/mt.
The index for weekly shredded settled at $271/mt cfr Taiwan, up by $8/mt from the week prior, and by $15/mt from June 30.
Japanese small bulk cargoes of HMS 1&2 (50:50) were offered at $263/mt cfr Taiwan, while bids were at $259-260/mt cfr.
Most mills have ramped up production amid expectations of finished steel trades to improve since major infrastructure projects scheduled to commence soon. A shortage of domestic ferrous scrap made buyers resort to overseas trades.
Bids by mills in the country are presently higher than most Asian markets, making Indonesia a preferred destination for containerized scrap exporters.
The weekly index for HMS 1&2(80:20) rose by $8/mt to $271/mt cfr Jakarta. A few trades for the grade were also heard at $270/mt cfr.
Trades for containerized #1 busheling and shredded from the US were heard at $310/mt cfr and $283/mt cfr, respectively. The weekly indexes for #1 busheling and shredded rose by $3/mt to $310/mt cfr and $284/mt cfr Jakarta, respectively.
The index for #1HMS rose by $15/mt to $276/mt cfr with offers this week at $280/mt cfr. After returning from the Eid-Al-Adha holidays, most buyers have gone into a wait-and-watch mode expecting containerized scrap prices to drop, but in vain so far.