Japanese domestic ferrous scrap prices ended their month-long downtrend early in this week. Yards now hope for prices to increase led by rising global ferrous scrap prices by $4/mt on Wednesday from the prior day.
The weekly Davis Index for #2 HMS settled unchanged at JPY21,750/mt ($198/mt) fob Japan on Wednesday. Trades of #2 HMS were at JPY21,500-22,000/mt fob Japan and #2 HMS in small bulk cargoes was offered at JPY245-250/mt cfr Vietnam with no takers.
Few yards are paying JPY20,000-22,500/mt fas Tokyo bay for collection of #2 HMS with its index settling at JPY20,000/mt fas Tokyo bay.
The Davis Index for Busheling settled at JPY24,500/mt ($221.8/mt) fob Japan on Wednesday, up JPY250/mt from the prior week, with trades reported at index price.
Trade of 5000mt Busheling (shindachi) in small bulk cargo was reported at $255/mt cfr Vietnam.
Japanese H1: H2 in small bulk cargoes was offered at $250-255/mt cfr Vietnam and $240-245/mt cfr Taiwan, up by$10/mt from the prior week. A standoff between Vietnamese mills and Japanese scrap suppliers extended as expectations from suppliers remained higher by $10/mt than the bids. Finished steel demand in both, Taiwan and Vietnam, failed to pick up.
Early this week, Japanese scrap yards raised offers by JPY500-1000/mt for all scrap grades in seaborne trades to Taiwan and Vietnam at cfr levels.
In the domestic market, Tokyo steel held prices unchanged for ferrous scrap purchase since Feb 13. The mill is paying JPY20,500/mt for #2 HMS scrap del Tahara plant and JPY20,000/mt del Utsunomiya plant in Kanto region. Prices for #2 HMS in Kyushu, Okayama and Takamatsu were flat at JPY20,000/mt, JPY19,000/mt and JPY18,000/mt, respectively.
Feng Hsin steel announced a price hike by NT$300/mt for its domestic ferrous scrap purchase effective Feb 19. HMS 1&2 (80:20) delivered to Southern region plants rose to NT$7,200-7,300/mt this week.
Imported ferrous scrap prices into Pakistan increased this week mirroring the rising global scrap prices. Containersed shredded scrap traded at $298-302/mt cfr Port Qasim early this week.