Weak demand for imported ferrous scrap from steel mills pressured its prices in the week. Scrap prices declined by $10/mt in South Korea with producers lowering their steel production amidst a drop in global billet prices by $10/mt.
South Korean mills preferred buying Japanese scrap in bulk volumes over containerised scrap trades. Besides lower landed cost, Japanese bulk scrap export prices fell by $10/mt from the prior week and were competitive compared to those for US containerised levels. Limited deals of containerised scrap were reported in South Korea this week.
The Davis Index for containerised HMS 1&2 (80:20) settled at $241/mt cfr South Korea, down $9/mt from the prior week. Few yards with abundant scrap lowered their prices in the week expecting to liquidate their stock.
The Davis Index for containerised shredded settled at $252/mt cfr South Korea, down $9/mt from the prior week. Trades concluded from US-origin west coast suppliers at $250-255/mt cfr South Korea early this week. Suppliers are hoping for global ferrous scrap prices to rise driven by the marginal rise in Turkish bulk cargo prices. The Davis Index for US-origin HMS 1&2 (80:20) settled at $261.35/mt cfr Turkey on Monday, up by $1.46/mt from Feb 7. Few yards, thus, refrained from offering scrap at present levels.
US-origin HMS 1&2(80:20) mixed scrap in bulk cargo was offered in the range $250-260/mt cfr South Korea, down $15/mt from the prior week.
Thin trades of US origin containerised HMS 1&2 (80:20) concluded at $215/mt cfr Taiwan early this week. Prices fell from $233-235/mt cfr Taiwan levels on Feb 6. Many construction projects, mainly those owned by Chinese entities are delayed on Chinese coronavirus lockdown.
UK-origin shredded trades were reported at $285/mt cfr Port Qasim, up marginally from $280/mt cfr Qasim on Feb 7. Offers are now in the range of $288-290/mt cfr Port Qasim and bids at $280-285/mt, but no trades were reported.