Prices for containers of imported ferrous scrap rose amid a global shortage of material, as well as containers. Demand, however, is still under pressure and mills opted for domestic material, prices for which were lower than imported scrap.
The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $329/mt cfr South Korea, up by $15/mt, with limited deals heard. Offers for HMS 1&2 (80:20) by US sellers in FEUs, were at $335/mt cfr, while bids were at $325/mt cfr.
The weekly Davis Indexes for P&S 5ft, #1 HMS, and shredded rose by $11/mt, $15/mt, and $16/mt to $356/mt, $335/mt, and $349/mt cfr South Korea, respectively.
A deal for busheling was heard at JPY39,000/mt ($374.7/mt) fob this week, while that for #2 HMS at JPY35,500/mt fob earlier this week. Offers for Russian A3 were at $389/mt cfr.
South American suppliers offered HMS 1&2 (80:20) at $320-325/mt cfr South Korea on Wednesday, prices which were up by $10-15/mt from the prior week.
With firm demand for billets in China, mills in South Korea increased production, hoping to raise exports. Billet export offers from mills in Southeast Asia increased by $10/mt from last week to $520-530/mt cfr China. Demand for billets in India is bullish and mills in the country thus focused on sales in their own country.
The HRC market has strengthened this week in Asia with demand from the auto sector.
Taiwanese mills resorted to buying limited volumes. The Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, rose by $1/mt to $331/mt cfr Taiwan. A few deals were also at $330/mt cfr Taiwan this week. Offers then increased to $335-340/mt cfr.
Deals were also heard in FEUs at $335/mt cfr on Monday. No bulk deals were heard this week.