Domestic ferrous scrap markets in Southeast Asia are very weak as COVID-19 cases escalated and governments extended restrictions to curb the spread. Business sentiments have dampened in East Asian countries as many factories remained shut and construction work halted amid lockdowns.
The weekly Davis Index for HMS 1&2 (80:20) is flat at CNY3,730/mt ($577.10/mt) del China consumer on Tuesday.
Domestic billet prices dropped to CNY5,100 ($789.07/mt) ex-Tangshan, including VAT, down by CNY160/mt ($24.76/mt) from a week ago.
Overseas offers for billet at $705/mt-$715 cfr China for September shipment.
The weekly Davis Index for domestic Heavy A rose by KRW5,000/mt ($4.36/mt) to settle at KRW570,000/mt ($496.59/mt) del Incheon, while the index was flat at KRW570,000/mt ($496.59/mt) del Pohang.
The weekly Davis Index for domestic Light A settled flat at KRW540,000/mt ($470.46/mt) del Pohang. Offers for the grade ranged from KRW535,000/mt-KRW545,000/mt.
Russian A3 is heard to be purchased at $495/mt for 70,000mt cfr South Korea.
Trades in the domestic market slowed as mills undertook maintenance work, but supplies remain tight. Additionally, summer season has dampened demand for steel products.
The weekly Davis indexes for domestic HMS 1&2 (80:20) settled flat at TWD12,300/mt ($440.63/mt), del Northern mill and TWD12,000/mt ($429.89/mt), del Southern mill.
Feng Hsin Steel kept its scrap purchase bids flat after lowering it last week. The rebar prices remain flat as well.
The Davis Index for imported HMS 1&2 (80:20) settled at $436/mt cfr Taiwan, down $9/mt from Tuesday. The offer was heard at $440-$450/mt.
Tokyo steel, Monday, cut domestic scrap prices by JPY500/mt ($4.56/mt) for all grades, except #1 busheling (shindachi) for deliveries to Tahara works, effective Aug 3.
Bids for HMS #2 at JPY49,500/mt ($451.39/mt) del Tahara,JPY50,500/mt ($458.54/mt) del Okayama, JPY49,000/mt ($444.92/mt) del Kyushu, and JPY49,000 ($444.92/mt) del Takamatsu.
Scrap generation in the country is adversely affected due to the upcoming Obon holidays next week.
The weekly Davis Index for HMS 1&2 (80:20) in Vietnam fell VND200,000/mt ($8.72/mt) to VND10,500,000/mt ($457.59/mt) delivered Southern mill.
Offers for billet at $705/mt-$715 cfr Manila for September shipment.
Vietnam extended movement restrictions for two more weeks in its business hub Ho Chi Minh City and another 18 cities and provinces in the southern region to curb the COVID-19 outbreak, on Monday.
The weekly Davis index for domestic HMS 1&2 (80:20) settled at THB13,300/mt ($402.79/mt), down by TWD50/mt ($1.51/mt) del Rayong mill.
Thai mills continued to stay silent amid COVID-19 restrictions that have been extended with tighter containment measures in the capital and high-risk provinces probably until the end of August.
The weekly Davis Index for HMS 1&2 (80:20) settled at MYR1,710/mt ($405.17/mt) del eastern mill and MYR1,680/mt ($398.06/mt), down MYR20/mt ($4.74/mt) del western mill. The COVID-19 situation in the country has deteriorated amid worsening political turmoil.
($1= JPY109.18; TWD27.91; CNY6.46; THB33.02; MYR4.22; VND22946.46; KRW1,147.82)