Imported ferrous scrap prices fell this week, pressured by a decline in global ferrous scrap and billet prices.
Southeast Asian mills kept billet offers low amid competitive prices from Japan, China and India.
Taiwan mills dropped their bids by $10/mt for both, US and Japanese-origin scrap in the week. Bookings of ferrous scrap in Indonesia picked up after two weeks of silence.
Taiwan
Imported ferrous scrap prices into Taiwan dropped by $10/mt as mills lowered bids to maintain their profit margins. Oversupply of billets relative to a weak global demand pressured its prices.
The weekly Davis Index for containerised US-origin HMS 1&2(80:20) settled at $236/mt cfr Taiwan on Thursday, down by $10/mt. Trades for containerised HMS 1&2 (80:20) concluded at $238-240/mt cfr Taiwan early in the week and prices subsequently fell to $235/mt cfr Taiwan.
The Davis Index for containerised shredded settled at $248/mt cfr Taiwan, down by $10/mt. Trades were reported at $245-250/mt cfr Taiwan.
Japanese H1: H2 in small bulk cargoes was offered at $250-255/mt cfr Taiwan, down by $5-10/mt from the prior week, but bids were at $245/mt cfr Taiwan.
Vietnam
In absence of demand from South Korean mills, Japanese yards turned to buyers in Vietnam. Mills in Vietnam have ramped up their production due to healthy finished steel demand in domestic markets amidst ongoing infrastructure projects.
A mill based in northern region booked 5,000mt small bulk cargo with Japanese #2 HMS at $245/mt (JPY26,192/mt) cfr Vietnam, down $5-10/mt from the prior week. Offers for the same grade were at JPY23,500-24,000/mt fob Japan, $248-250/mt cfr northern Vietnam and $255-260/mt cfr southern Vietnam, early this week.
Japanese origin HMS 1&2 (50:50) in small bulk cargoes traded at $250/mt cfr Vietnam, down $5-10/mt from the prior week. HS scrap equivalent to P&S was offered at $272-275/mt cfr Vietnam to a southern mill.
The weekly index for containerised HMS 1&2 (80:20) dropped to $245/mt cfr Vietnam, down by $8/mt. US West coast-based ferrous scrap yards offered containerised HMS 1&2 (80:20) at $245-250/mt cfr Vietnam and South Korea this week.
Offers for scrap in bulk cargoes from US west coast suppliers fell by $5-10/mt from the prior week. HMS 1&2 (80:20) in bulk cargoes offers were at $270-275/mt cfr Vietnam and those for shredded were at $290-295/mt cfr Vietnam. But there were no takers at those levels.
The weekly Davis Index for P&S 5ft settled at $265/mt cfr Vietnam, down by $7/mt.
Japan
Ferrous scrap markets are awaiting Kanto’s monthly scrap export tender results to be declared on Mar 11 for a price direction in the near term.
At present, a supply crunch in Kanto region has pushed #2 HMS export prices up by JPY1000-1500/mt to JPY23,500-24000/mt fob Japan from the prior week. Japanese ferrous scrap generation has reduced with a fall in auto production due to the Covid-19 lockdown. Market participants are unsure of bullishness in prices sustaining in the coming days on persisting weak finish steel demand.
Trades of Japanese shredded were reported at JPY27,500/mt cfr South Korea.
Indonesia
Indonesian mills broke their two weeks of silence and bookings increased this week. A few mills wait for prices drop to further before they resume bookings.
The Davis Index for containerised P&S 5ft settled at $293/mt cfr Jakarta, down by $11/mt from the prior week. UK and US origin yards offered containerized P&S 5ft at $305/mt and $275/mt cfr Jakarta, respectively. But bids for P&S 5ft of UK-origin were at $290/mt and that for US-origin were at $270/mt cfr Jakarta. No trades were reported.
Bids from mills are $10-15/mt lower than present price levels, thus, traders held back offers. Suppliers preferred Indian and Pakistani markets over Indonesia for better realisations.
The weekly index for Busheling scrap settled at $305/mt cfr Jakarta, down by $9/mt. Containerised Busheling from UK and Malaysia was offered in the range $315-320/mt cfr Jakarta, with no takers at those levels.
The Davis Index for containerised shredded settled at $289/mt cfr Jakarta, down by $9/mt from the prior week.
The Davis Index for containerised HMS 1&2 (80:20) settled at $258/mt cfr Jakarta, down by$7/mt from the prior week.