The weekly Asian domestic ferrous scrap prices remained flat due to the Chinese New Year and Vietnamese Tet holidays, and the Coronavirus-related lockdown across China this week.
The weekly Davis Index for domestic HMS1&2 (80:20) delivered South Taiwan dropped to NT$7,575/mt ($252/mt), down by NT$25/mt from the week prior.
The weekly index for HMS 1&2 (80:20) delivered North Taiwan settled at NT$7,775/mt plant, down NT$25/mt from the prior week.
Feng Hsin Steel’s scrap and rebar prices remained unchanged from the week prior as the plant remained shut for the Chinese New Year holidays.
The company’s purchase price of domestic HMS 1&2 (80:20) delivered Taichung plant remained unchanged at NT$7,500/mt, and grade 40 rebar prices, including local taxes, were at NT$14,800/mt ex-producer plant.
Chinese New Year holidays have been extended to the first week of February because of the Coronavirus.
Bids for US-origin containerised HMS 1&2 (80:20) were in the range of $248-250/mt cfr Taiwan, down from $252-255/mt cfr Taiwan in the second half of last week.
Japanese ferrous scrap prices continued its slide.
Japanese ferrous scrap prices dropped by a total of JPY1,000/mt in both domestic and export markets from last Thursday.
Tokyo Steel lowered its bids for Japanese scrap by JPY500/mt effective January 29.
The new price for H2 will be JPY24,000/mt del Tahara, Kyushu and Utsunomiya plants, effective Jan 29. The bids for H2 in Okayama and Takamatsu were at JPY22,500/mt and JPY21,500/mt, respectively.
South Korean steel mills booked Japanese scrap at lower prices as demand from Vietnam and Taiwan declined.
A major steel mill booked Japanese H2 scrap in bulk volumes at JPY25,500/mt fob Japan equivalent to JPY28,000/mt cfr South Korea, down JPY1,000/mt from a week earlier.
The weekly Davis Index for domestic Heavy A settled at KRW287,500/mt ($244/mt) delivered Incheon plant, down by KRW1,250/mt from the prior week.
Steel mills in Incheon stopped buying ferrous scrap in anticipation of a further price drop in the near term. The index for the same grade settled at KRW277,500/mt del Pohang plant, unchanged from a week earlier.
The weekly index for domestic Light A settled at KRW261,000/mt delivered Pohang plant, down by KRW250/mt from the prior week.
The weekly Davis Index for HMS 1&2 (80:20) settled unchanged at VND6,175,00/mt ($266/mt) (inclusive of taxes) delivered South Vietnam, on Tuesday. Steel mills stayed away from buying ferrous scrap given the Tet holidays across the country.
Chinese domestic scrap prices remained on a downtrend amid sluggish demand from major steelmakers. The weekly Davis Index for domestic HMS 1&2 (80:20) China settled at CNY2,600/mt ($380/mt) inclusive of 13pc VAT delivered to mill, down by CNY25/mt ($6/mt) from the prior week. Most mills halted production for the New Year holidays.
Malaysian domestic scrap prices fell as mills refrained from trades. The Davis Index for domestic HMS1&2 (80:20) dropped to MYR950/mt ($233/mt) delivered Klang region, from MYR960/mt a week ago. The Davis Index for HMS1&2 (80:20) delivered to Kuantan region settled at MYR1,100/mt ex-works, down by MYR25mt from the prior week.
The Davis Index for domestic HMS 1&2 (80:20) delivered Rayong dropped to THB9,000/mt ($291/mt), from THB9,183/mt in the prior week inclusive of taxes. Containerised HMS 1&2 (80:20) was offered in the range $250-260/mt cfr Thailand with no trades at those levels.
Imported shredded scrap bids from India and Pakistan steel mills fell in the range $290-295/mt cfr from the last week close.
($1=NT30.11, CNY6.94, THB30.39, MYR4.086 VND23,172.5, KRW1,179.71)