Prices of containerized imported ferrous scrap fell amid slow finished steel demand. Also a switch to bulk buying from Japan due to container shortage and vessel delays lowered containerized scrap prices. Construction projects in the country have slowed amid a steep rise in the price of raw materials such as steel and cement. Many mills have lowered bids in line with a decline in scrap and ore prices in other Asian countries. The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $380/mt cfr South Korea down $45/mt from the prior week. Bids at $370-375/mt cfr with no deals heard this week.
The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, dropped by $40/mt and $38/mt to $403/mt and $385/mt cfr South Korea, respectively. The index for shredded fell by $38/mt to $400/mt from the prior week.
A South Korean mill Dongkuk bought Japanese #2 HMS at JPY36,500/mt fob ($351.6/mt) on Tuesday, down by JPY5,000/mt from prior deal.
On Wednesday, domestic scrap bids fell by KRW10,000/mt ($9/mt) with domestic Heavy A trading at KRW420,000-425000/mt delivered Pohang in line with the drop in global scrap prices.
Taiwanese mills reduced bids amid sluggish finished steel demand and weak global cues. The Davis Index for containerized US-origin HMS 1&2 (80:20) fell by $14/mt on Wednesday from Monday to $382/mt cfr Taiwan. Some traders reduced bids to $375/mt, while exporters revised offers to $385/mt to offload inventory and avoid a cash crunch. Few deal for USWC HMS 1 & 2 (80:20) heard at $380/mt cfr on Wednesday.
Mills are tracking Japanese export and South Korean import price trends to gauge price direction. With Turkish purchase prices falling $25.2/mt on Tuesday, Taiwanese importers are expected to reduce bids further.
Domestic scrap prices Wednesday fell by $14/mt from Monday amid a fall in finished steel demand, said traders.