The weekly Davis Index for containerized HMS 1&2 (80:20) settled unchanged at $268/mt cfr South Korea on Wednesday. Import prices for other scrap grades were also flat this week as mills preferred domestic ferrous scrap.
Mills booked domestic Heavy A at KRW3,40,000-3,50,000/mt($286-294/mt) del plant to avoid buying higher-priced imported material.
As expected, Japanese export prices are expected to rise further aided by an increase in average winning bids at the Kanto tender. With mills like JFE restarting banked furnaces, the Japanese domestic scrap market also strengthened this week.
The weekly index for P&S 5ft, #1HMS, and shredded settled unchanged at $280/mt, $270/mt, and $277/mt cfr South Korea, respectively.No deals were heard in the containers or the bulk market this week.
South American suppliers offered HMS 1&2 (80:20) at $260-265/mt cfr, up by $5/mt from the prior week. In the bulk market, Japanese HS and #2 HMS were offered at JPY32,000/mt and JPY28,500-29000/mt fob, respectively, with no trades.
On Tuesday domestic ferrous scrap prices in Korea fell by KRW10,000/mt.
The daily index for US-origin containerized HMS 1&2 (80:20) trended down by $2/mt to $272/mt cfr Taiwan on Wednesday. Prices declined as mills kept bids lower at $268-270/mt despite offers rising to $275-280/mt cfr.
Mills are likely to book US-origin HMS 1&2 (80:20) at $280/mt levels by end of this week. Traders state sustained trading in Turkey and rising bids after the Kanto tender will push offers for imported material higher in the coming days.
A shortage of domestic scrap is also adding to the woes of steel mills. Mills are yet to increase production amid sluggish finished demand. Offers for South American HMS 1&2 (80:20) were at $265/mt cfr with no trades heard. Buyers may reduce bookings this week due to bullish offers and weak domestic fundamentals.
A rise in global finished steel prices and demand in October seems to be on the cards with global trades picking up.