Asian weekly domestic ferrous scrap prices were flat to down in most markets amid subdued demand. Major steel mills dropped their scrap purchase prices in Taiwan and Japan. Scrap buyers in Vietnam and South Korea eyed Japanese ferrous scrap priced lower than the material from other countries. Activity in South Asian markets was higher than that in Southeast Asian markets in the week.
Taiwan’s domestic ferrous scrap prices dropped for the second week on negative sentiments in the domestic steel market on the back of Covid-19 outbreak. The weekly Davis Index for domestic HMS 1&2 (80:20) in South Taiwan settled at NT$6,800/mt ($226/mt) del plant, down by NT$200/mt.
The weekly index for HMS 1&2 (80:20) in North Taiwan settled at NT$7,000/mt del plant, down by NT$300/mt. Mills cited that a decline in global billet prices pressured domestic scrap prices.
In South Taiwan, Feng Hsin Steel lowered its domestic scrap purchase price by NT$200-300/mt in a week. It is now paying NT$6,700-6,800/mt for domestic HMS 1&2 (80:20) delivered Taichung plant, down NT$200/mt from the prior week. The steelmaker kept its grade 40 rebar prices including local taxes at NT$15,300/mt ex-plant, flat from a week ago.
Tokyo Steel announced a price cut late last week weighing down domestic ferrous scrap prices.
Tokyo Steel lowered its ferrous scrap purchase bids at its Kyushu plant by JPY500/mt on effective March 7. Bids for #2 HMS dropped to JPY19,500/mt del Utsunomiya plant in the Kanto region and JPY19,000/mt del Kyushu plant.
Bids for #2 HMS in Tahara, Okayama and Takamatsu, remained unchanged at JPY20,500/mt, JPY19,000/mt and JPY18,000/mt, respectively.
Bids for Bushelling were at JPY22,500/mt del Tahara and JPY21,500/mt del Utsunomiya.
Though the mill has lowered its purchase price at present, the Kanto monthly scrap export tender scheduled on March 11, is likely to offer more clarity on the price direction in the coming days.
South Korean domestic ferrous scrap prices ended their three-week downtrend and remained flat this week. The weekly Davis Index for domestic Heavy A del Incheon settled unchanged at KRW267,500/mt ($223/mt) and KRW257,500/mt del Pohang. The weekly Davis Index for domestic Light A delivered Pohang plant settled unchanged at KRW245,000/mt.
South Korean mills preferred competitively priced Japanese scrap. Bids for Japanese #2 HMS in bulk were at JPY23,000/mt fob Tokyo Bay. Trades of Japanese-origin Busheling (shindachi) and P&S scrap were at JPY26,000/mt fob Japan.
The weekly Davis Index for HMS 1&2 (80:20) delivered South Vietnam settled Tuesday at VND5,900,000/mt ($254/mt) inclusive of taxes, up by VND100,000/mt from the prior Tuesday. Southeast Asian billet prices dropped to $410-415/mt cfr Southeast Asia from $420-425/mt in the prior week. Late last week, a mill booked bulk ferrous scrap cargo from Australia comprising 30,000mt HMS1&2 (80:20) at $280/mt cfr Vietnam.
The weekly Davis Index for domestic HMS 1&2 (80:20) settled unchanged at CNY2,520/mt ($361/mt) inclusive of 13pc vat delivered mills in eastern China.
Domestic HRB400 20mm diameter rebar prices in China dropped to CNY3,600/mt including 13pc VAT, down by CNY5-10/mt on Monday from the last Friday.
Tangshan based steel makers offered billets at CNY3,080/mt, down CNY10/mt from the Friday.
Construction activities in most Chinese regions are gaining momentum and steel consumption picked up in the week.
The weekly Davis Index for domestic HMS 1&2 (80:20) delivered Rayong settled at THB8,750/mt ($278/mt), down THB50/mt inclusive of taxes.
The Davis Index for domestic HMS 1&2 (80:20) delivered western mills settled at MYR875/mt ($208/mt), down MYR5/mt from the prior Tuesday and the index for HMS 1&2 (80:20) delivered eastern mills remained flat at MYR975/mt, inclusive of taxes.
($1= TWD30.02, CNY6.95, THB31.48, MYR4.22 VND23206.5, KRW1,200.73, PKR153.15)