Containerized imported ferrous scrap prices increased amid rising offers supported by scrap and container shortage in most exporting countries. Mills stayed away from purchases this week on account of holidays. A few buyers raised bids to secure material at current prices in anticipation of a further rise in global scrap prices post-Lunar New Year holidays. Many steel mills in East Asia are under annual maintenance during holidays and expected to resume scrap buying in March.
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, rose $2/mt from the prior week to settle at $363/mt cfr South Korea. Bids increased $5/mt to 360-365/mt cfr, while offers heard at $370/mt. No deals heard this week but some trades concluded at $355/mt cfr earlier last week.
The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, rose by $8/mt and $7/mt to $391/mt and $375/mt cfr South Korea, respectively. The index for shredded rose by $6/mt to $380/mt from the prior week. Traders indicated that Korean mills might start purchasing containerised scrap in mid-February after holidays.
Traders anticipate a further rise in Japanese export prices after Kanto Tender. With higher purchases by Turkish mills on the back of rising finished steel demand, the index rose $1/mt on Tuesday from Monday.
Offers for Japanese #2 HMS rose to JPY40,000/mt fob ($382/mt) up by JPY5,000/mt fob from the prior week amid purchases by Hyundai and Dongkuk at JPY35,000/mt fob.
The Davis Index for domestic Heavy A fell by KRW20,000/mt to KRW395,000/mt and KRW375,000/mt ($339/mt) delivered Incheon and Pohang, respectively, on Tuesday. Mills reduced their bids for domestic scrap amid scheduled maintenance, said traders.
Few Taiwanese mills raised bids in anticipation of a further rise in ferrous scrap prices globally due to rising finished steel demand and scrap shortage. The Davis Index for containerized US-origin HMS 1&2 (80:20) rose by $3/mt on Wednesday from the prior day.
Traders indicated few Taiwanese mills hiked bids while most are under maintenance and will be back in the market post-holidays.
Mills are tracking Japanese export and South Korean import price trends to gauge price direction post Kanto Tender.