Sentiments
in the Asian scrap markets remain weak due to falling prices in global scrap
markets outside Asia including Turkey coupled with the weak demand for finished
steel. Offers for HMS (80:20) are hovering at $365-370/MT CFR South East Asia.
Japan: Japanese
small furnaces have shifted to low grade scrap material to maintain production
cost. However, they have lifted scrap buying prices for low grade scrap such as
turnings and pressed scrap by around $12/MT (JPY 1,000/MT). Meanwhile, Tokyo Steel
Manufacturing is currently paying JPY 25,000/MT ($303/MT) for HMS 2 at its
Utsunomiya unit.
“Higher
grade scrap prices are high at the moment in the market, so this (buying low grade scrap) is one way for
small furnaces to maintain costs”, a market participant commented.
Korea: A major
Korean mill booked 2 bulk cargoes of USWC (US West Coast) at $389/MT CFR for
HMS I last week (to be delivered in January). This transaction was offered at
$390-395/MT CFR from US supplier while Korean mill quoted $380/MT CFR.
Taiwan: Offers
for HMS (80:20) are at $365-368/MT CFR Taiwan. This week, containerized HMS 1&2
(80:20 blend) was sold at $368/MT CFR, down by $12/MT from last week. However,
buyers prefer to wait and watch in anticipation of further price correction.
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