Japanese exporters raised offers on strong global cues, while bids remained flat from the prior week. Most suppliers are waiting for firm bids from Asian steel mills. The weekly index for #2 HMS rose by JPY625/mt ($5.7/mt) to JPY40,375/mt ($365/mt) fob with traders expecting bids to rise in the coming weeks due to a shortage of scrap in the domestic markets and higher freight rates. On a fas basis, the index rose by JPY625/mt to JPY39,375/mt ($356/mt) fas.
Hyundai steel’s bids remained unchanged at JPY40,000/mt fob in line with flat domestic scrap prices in Japan this week. Tokyo steel has kept bids unchanged from March 26, but sellers expect a rise due to shortage and increased demand from China and other South Asian countries.
The index for P&S 5ft (small bulk) China port settled at $485/mt cfr, up by $5/mt from the prior week. Most Chinese mills have raised inquires for ferrous scrap in small bulk as many prefer scrap due to the ongoing pollution-related restrictions and rise in iron ore prices. Offers for HS or P&S remained stable at $480-490/mt cfr China while bids rose to $480/mt cfr on Wednesday.
Prices of 62pc Fe iron ore rose by $3.5/mt to around $165.5/mt on Wednesday on recovering demand. Ore prices recovered with mills anticipating easing production restrictions amid lower finished steel inventory.
Offers for Japanese #1 busheling (Shindachi) rose by over JPY500/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 JPY500/mt to JPY44,500/mt fob Japan, while on a fas basis, the index rose by JPY500/mt to JPY43,500/mt fas.
With Turkish mills increasing purchases ahead of Ramadan, the index for HMS 1&2 (80:20) rose by $3.5/mt to $423.2/mt cfr Turkey from the prior week. South Asian buyers are closely watching Turkish and Chinese purchase before negotiations.
The weekly Davis indices for HS and shredded, Wednesday settled at JPY43,250/mt and JPY43,000/mt fas Japan, flat and up by JPY1,500/mt, respectively. Limited trades heard as most mills adopted a wait and watch strategy due to volatility.
Offers for HMS 1&2 (50:50), Wednesday, rose to around $450/mt cfr Vietnam with the index for the grade settling at $445/mt cfr Haiphong, up by $9/mt on global cues.
Suppliers negotiated high cfr offers with Taiwanese importers. The index for Japanese HMS 1&2 (50:50) rose by $6/mt to $430/mt cfr Taiwan. Traders indicate prices rose on rising Chinese steel and iron ore futures. Most offers rose to $435/mt, up $5/mt from the prior week.
($1=JPY110.5)