Ferrous scrap import prices increased in Asia on rising demand from South Korea, Indonesia and Vietnam mills. Trades picked up after two weeks of tepid activity. Scrap supply though remains tight. There were indications of Japanese export prices to remain firm. Bulk import prices in Turkish markets are also likely to rise. Turkey has imposed additional 10-15pc tariffs on imports for HRC and CRC applicable till the end of September 2020. The safeguard measure is likely to boost domestic steel demand and imports of scrap could increase in the coming days, said a trader.
Japanese ferrous scrap export prices rose by JPY1,000-1,500/mt from the prior week. Domestic scrap prices also increased this week as Tokyo Steel raised prices by JPY1,000/mt for all grades of scrap at all major plants effective May 22. New bids for #2 HMS are at JPY19,500/mt del to Utsunomiya and Tahara works, up from the previous set of prices last revised on April 28.
Scrap import prices were flat as mills reduced buying further.
The daily Davis Index for containerised US-origin HMS 1&2 (80:20) was unchanged at $223/mt cfr Taiwan on Thursday. Offers for US-origin HMS 1&2 (80:20) were reported at $225-230/mt cfr Taiwan
The weekly Davis Index for containerised shredded settled flat at $235/mt cfr Taiwan with no bids heard. Thursday marked day two of the continuous ten-day rain forecast and traders are expecting bookings to fall further taking bids down by $5-$10/mt. No major trades for busheling and P&S scrap were reported.
In small bulk markets, Japanese suppliers sold #2 HMS at $230-235/mt cfr Taiwan. Shredded traded at $245-250/mt cfr Taiwan, up by $5/mt from the prior week.
Offers from US suppliers for HMS 1&2 (80:20) in bulk cargoes were flat at $260-265/mt cfr Vietnam.
In small bulk markets, Japanese #2 HMS traded at $250-255/mt cfr South Vietnam. HMS 1&2 (50:50) and HS traded at $255/mt and $275/mt cfr Vietnam, respectively, both up $5/mt from the prior week.
Japanese bulk shredded traded at $255-260/mt cfr South Vietnam and busheling at $265-267/mt cfr Vietnam.
The Davis Index for containerised P&S settled at $255/mt cfr Vietnam, up by $2/mt from the prior week. Offers for FEUs of P&S further rose in the range of $260-265/mt cfr Vietnam.
The index for US origin containerised shredded settled at $250/mt, up by $5/mt from $245/mt cfr Vietnam prior week. The Davis Index for containerised HMS 1&2 (80:20) settled at $234/mt cfr Vietnam, up by $1/mt from the prior week. South American suppliers offered HMS 1&2 (80:20) at $235-240/mt cfr Vietnam, up by $5/mt from the prior week.
Indonesian mills continued booking seaborne scrap. Trades are likely to dip for a week due to Eid holidays.
Offers from US suppliers moved up on short supply. US-origin shredded in TEUs was offered at $250-255/mt cfr Jakarta and P&S scrap in FEUs at $265/mt cfr Jakarta, both up by $5/mt from the prior week. The Davis Index for containerised P&S 5ft settled at $256/mt cfr Jakarta, up by $1/mt from the prior week.
The weekly index for busheling scrap settled at $263/mt cfr Jakarta, up by $3/mt. Trades from Malaysia for busheling concluded at $265-268/mt cfr Jakarta. Busheling from the UK and EU was offered at $280-285/mt cfr with no bids.
The Davis Index for containerised shredded settled at $251/mt cfr Jakarta, up by $1/mt from the prior week.
The Davis Index for containerised HMS 1&2 (80:20) settled at $228/mt cfr Jakarta, down by $2/mt from the prior week. Offers of US-origin HMS 1&2 (80:20) dropped marginally to $227-232/mt cfr Jakarta. Bids were at $225/mt cfr Jakarta.
A trader booked Australian origin HMS 1&2 (80:20) in containers at $228-230/mt cfr Thailand.
US origin conatinerised shredded was offered to a Malaysian mill at $255/mt cfr Malaysia, with bids at $248-250/mt cfr Malaysia.