Japanese exporters raised ferrous scrap offers on strong global cues. Most suppliers are waiting for higher bids from Asian steel mills this week. The weekly index for #2 HMS rose JPY1,458/mt ($13.3/mt) to JPY41,833/mt ($380.9/mt) fob with traders raising offers to JPY43,000-44,000/mt fob after Korean mills bought at JPY41,500/mt fob this week. On a fas basis, the index rose by JPY1,625/mt to JPY40,000/mt ($364/mt) fas.
Tokyo steel bids remained flat this week, while suppliers anticipate a rise by JPY1,000-2,000/mt soon due to short supply and increased demand from China and other South Asian countries.
The index for P&S 5ft (small bulk) China port settled at $494/mt cfr, up by $9/mt from the prior week on rising offers. Offers for HS or P&S rose to $495-505/mt cfr China while bids rose to $485-490/mt cfr on Wednesday.
Production cuts lifted steel prices to a decade’s high in China. Prices of 62pc Fe iron ore rose by $5.5/mt to around $171/mt on Wednesday on recovering demand.
Offers for Japanese #1 busheling (Shindachi) rose by over JPY2,000-3,000/mt due to a shortage of scrap and strong global cues.
Freight charges have remained high resulting in costlier imports for overseas buyers. The weekly index for the grade rose by JPY2,500/mt to JPY47,000/mt fob Japan, while on a fas basis, the index rose by JPY2,000/mt to JPY45,500/mt fas. Offers rose to JPY46,000-47,000/mt fas, while bids were still lower by JPY1,000-1,500/mt fas on Wednesday.
With Turkish mills increasing purchases ahead of Ramadan, the index for HMS 1&2 (80:20), Tuesday, rose by $1.5/mt to $427/mt cfr Turkey from Monday. South Asian buyers are closely watching Turkish and Chinese purchase before negotiations.
The weekly Davis indices for HS and shredded, Wednesday settled at JPY45,250/mt and JPY45,125/mt fas Japan, up by JPY2,000/mt and JPY2,125/mt, respectively. Limited trades heard as most mills adopted a wait and watch strategy due to high volatility.
Offers for HMS 1&2 (50:50), Wednesday, rose to around $455-460/mt cfr Vietnam, up by $5-10/mt from the prior week with the index for the grade settling at $447/mt cfr Haiphong up by $2/mt on global cues.
The index for Japanese HMS 1&2 (50:50) rose by $10/mt to $440/mt cfr Taiwan. Traders indicate prices are supported by rising Chinese steel and iron ore futures. Most offers rose to $445/mt cfr up $10/mt from the prior week.