Imported ferrous scrap prices in Southeast Asia and East Asia were under pressure on the back of global cues driven downward because of the China Coronavirus and the Lunar holidays. Mills have not resumed activities. 
The fall in Asian containerised scrap prices was led by Turkey, where the Davis Index for US-origin bulk HMS 1&2 (80:20) decreased by $12/mt to $272.5/mt cfr Turkey, on Wednesday, from $284.5/mt cfr a week ago.
Japan’s domestic ferrous scrap prices lowered by JPY1,000/mt from a week earlier with the potential for a further slide. 
Japanese #2 HMS was traded at JPY25,500/mt fob Japan with bids dropping to JPY25,000/mt fob Japan.  

Taiwan  
Taiwan’s imported scrap prices fell by $5-8/mt from the prior week. Steel mills resumed enquires as they returned to action today, but lowered bids in anticipation of a further price drop.  
Trades for ferrous scrap, too, were limited.  
The Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $248/mt cfr Taiwan, down by $5/mt from a week ago. 
Indications were reported in the $242-244/mt cfr Taiwan range for the same grade, with no suppliers at the moment.  
Suppliers resisted offering scrap at cheaper levels, as the possibility of a drop steeper than $20/gt in the US domestic markets in February waned. 

 

Domestic scrap and rebar prices are also likely to drop in the coming days, as imported scrap prices fell for three weeks successively.

The Davis Index for Japanese bulk H1&H2 (50:50) scrap fell by $4/mt to $265/mt cfr Taiwan, from the prior week.  

Vietnam
Vietnamese steel mills were stepping back from buying ferrous scrap amid the Coronavirus lockdown disrupting labour availability at mills and transport hubs. Some mills extended their holidays for another week.  
The Davis Index for HMS 1&2 (80:20) in containers fell to $260/mt cfr Vietnam, down by $2/mt from a week ago. 
Japanese HMS 1&2 (50:50) in bulk was offered at $275-280/mt cfr Vietnam, down $5/mt from a week ago.  

Indonesia
The Davis index for P&S 5ft scrap in containers settled at $300/mt cfr Jakarta, down $5/mt from the week prior. Europe, Brazil and UK origin P&S offered containers at $305-310/mt cfr Jakarta, with no takers at the moment.  
The weekly index for Busheling settled at $308/mt cfr Jakarta with no major trades reported this week. The Davis Index for containerised shredded settled at $288/mt cfr Jakarta, down by $9/mt from the prior week.  

Sellers at Baltic yards resisted offering shredded at cheaper prices today. The global uncertainty has pulled everyone into wait and watch mode.
The index for HMS 1&2 (80:20) settled at $263/mt cfr Jakarta, down $5/mt from the prior week. Bids from steel mills for HMS 1&2 (80:20) and mix shredded have dropped to below $260/mt cfr Jakarta.

Bangladesh
Trades for containerised HMS 1&2 (80:20) from South America closed at $280-282/mt cfr Chattogram, down $5/mt from a week ago in Bangladesh. Mills continued restocking ferrous scrap as domestic steel demand remains stable.  

India
Imported containerised HMS 1&2 80:20 from the UK traded at $286-287/mt cfr Nhava Sheva, down $5-6/mt from the prior Friday. Containerised shredded traded in the range $290-295/mt cfr Nhava Sheva. Mills continue to pay a premium for ferrous scrap compared to other Indian subcontinental countries as spread between scrap and finished steel was healthier in the past two weeks.  
 

 

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