Containerized imported ferrous scrap prices in Taiwan and South Korea declined this week. Supply, however, remains scarce.
Taiwan
The daily index for US-origin containerized HMS 1&2 (80:20) was flat at $264/mt cfr Taiwan on Wednesday. Limited deals were heard at $265/mt, while bids dropped to $260-265/mt cfr. As expected by importers, offers fell and are expected to fall further during this week as Taiwanese mills return to buying.
Turkish mills have increased booking of ferrous scrap amid an uptick in price. Suppliers believe global ferrous scrap prices will rise further on improving demand. The Davis Index for HMS 1&2 (80:20) rose on Monday by $2/mt to $285/mt cfr Turkey.
Offers for South American-origin HMS 1&2 (80:20) were at $260-265/mt cfr, similar to US-origin prices, due to which no deals were heard. Traders expect mills to bid at $255-260/mt.
In the domestic market, Taiwan’s China Steel Corporation (CSC) hiked flat steel prices for November deliveries by 5pc or NTD1,100/mt ($38/mt) effective Oct 13. The company expects domestic demand to recover and stay strong in Q4 FY2020.
South Korea
The weekly Davis Index for containerized HMS 1&2 (80:20) Wednesday settled at $260/mt cfr South Korea, down $3/mt. After Chuseok holidays trades in containerised have thinned. Some mid-size EAFs are yet to show buying interest. Domestic scrap prices were flat this week but as mills expect bids to fall by KRW10,000/mt on sluggish steel demand.
The Davis Index for domestic Heavy A delivered Incheon and Pohang, Tuesday, settled flat at KRW320,000/mt ($279/mt) delivered mills, with major steel mills like Hyundai, Dongkuk and others buying limited scrap at index prices.
A deal for 6,000mt Japanese #2 HMS by Dongkuk Steel was heard at JPY26,500/mt ($251/mt). Hyundai and other mills are also in talks with Japanese exporters to secure more scrap at lower prices. Korean mills booked cautious but expect finished steel export and domestic demand to recover with help from Chinese demand. Billet buyers from China were active this week with offers heard at $445/mt cfr on Wednesday. A deal for Vietnamese-origin billet was heard at $438/mt cfr China on Monday.
The weekly Davis Index for P&S 5ft, #1 HMS, and shredded fell by $3/mt to $273/mt, $265/mt, and $270/mt cfr South Korea, respectively. There were very few sellers in the market for containerised scrap as Korean buyers focused on low-priced bulk scrap, said market participants.
South American suppliers offered HMS 1&2 (80:20) at $265/mt cfr, flat from week prior due to shortage of ferrous scrap supplies from the region.
With global ferrous scrap prices rising, Korean mills are awaiting for the return of domestic demand from auto and infra sectors to increase their scrap purchases.
($1=KRW1,146)