Imported ferrous scrap prices in Asia remained on a downtrend amid weak global cue and rising supply. Offers were limited as exporters turned cautious amid a hike in container freights.
EAF-based steelmaker Tokyo steel reduced ferrous scrap price for the fifth time in March. The steelmaker lowers ferrous scrap bids by JPY500/mt ($4.6/mt) delivered Tahara and Utsunomiya mill, while bids at the other three works remain unchanged. Revised bids for domestic #2 HMS at JPY41,000/mt ($377/mt) delivered Tahara, JPY40,500/mt delivered Okayama, JPY41,000/mt delivered Kyushu, JPY40,500/mt delivered Utsunomiya and JPY39,500/mt delivered Takamatsu.
Market participants expect prices for Japanese scrap to remain under pressure as buyers in Taiwan, Vietnam and South Korea continue to lower bids. In small bulks, #2 HMS offered at around JPY40,500-41,000/mt fob Japan.
The daily Davis Index for US-origin containerized HMS 1&2 (80:20), Monday, fell to $397/mt cfr Taiwan, down $8/mt from Friday’s close. Bids on Monday dropped to $390-395/mt cfr amid sluggish demand. Supported by weather conditions improving collections and transportations of scrap, US-based exporters reduced offers. However, market participants are cautious to book high volumes amid a sharp rise in container freight and tight vessel space.
In the domestic market, Feng Hsin steel lowered bids for ferrous scrap by TWD300/mt on Saturday and again by TWD300/mt on Monday, resulting in a net drop of TWD600/mt to TWD9,900/mt ($348/mt) delivered plant from the prior week. Yards, however, held offers above TWD10,000-10,200/mt delivered plant.
The steelmaker also lowered offers for rebar by TWD600/mt ($21/mt) on Monday. Offers dropped sharply to TWD18,200/mt ex-works.
Importers are also tracking South Korean and Chinese purchases before negotiating, however, Chinese appetite remained limited. Mills in East Asia have turned cautious amid slow finished steel demand and are focusing more on bulk instead of containerized scrap deals amid easing supplies.