Japanese ferrous scrap export prices increased on the back of rising demand in Taiwan, Vietnam and South Korea. Scrap suppliers are waiting for Hyundai Steel’s tender result on Thursday for a price direction. Piled up containers have caused a congestion at South Korean ports.Japanese suppliers thus preferred to sell in Vietnam.
The weekly Davis Index for #2 HMS settled at JPY23,000/mt ($214/mt) fob Japan on Wednesday, up by JPY1,500/mt. Trades for #2 HMS concluded at JPY23,000/mt fob Japan, up JPY1,000/mt from the prior week. South Korean steel mills booked bulk volumes of Japanese HMS scrap in the last week.
In small bulk cargoes, #2 HMS was offered at $255-260/mt cfr Vietnam, up by $10/mt from the prior week. Bids were at $245-250/mt cfr Vietnam.
The Davis Index for busheling settled at JPY25,750/mt ($239/mt) fob Japan, up by JPY750/mt from the prior Wednesday.
The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $240/mt cfr Taiwan, up by $5/mt from the prior Wednesday. Taiwanese mills bid for #2 HMS at $235/mt cfr. Trades, however, concluded at $240/mt cfr Taiwan. Buyers expect Japanese prices to decline following global cues.
The index for HMS 1&2 (50:50) settled at $250/mt cfr Vietnam, up by $7/mt from the prior week.
Offers for busheling in small bulk cargoes were at $280-285/mt cfr Vietnam and HS were at $270-275/mt cfr Vietnam. Offers for busheling scrap in small bulk cargoes were at JPY25,500-26,000/mt fob Japan, up by JPY500-1000/mt from the prior week.
Japan Iron and Steel Federation state the country’s crude steel production in April 2019-March 2020 hit a ten-year low of 98.43mn mt, down 4.3pc from the prior year.
The weekly index for #2 HMS settled at JPY21,500/mt fas Tokyo bay on Wednesday, up by JPY500/mt. Scrap collection rates dropped significantly this week.
Prices for higher grade scrap remained unchanged with both, demand and supply limited. The weekly index for HS settled at JPY24,500/mt fas Japan and shredded at JPY24,000/mt fas Japan, both unchanged.
Japan’s domestic scrap prices were flat amid weakened demand. Tokyo Steel announced production cuts on the back of subdued finished steel demand. Bids for #2 HMS remained unchanged at JPY18,500/mt delivered Utsunomiya in Kanto region and JPY17,500/mt del Kyushu plant. Bids for busheling at Tahara and Utsunomiya remained at JPY20,500/mt fob Japan.