According to sources, the scrap market in East Asia has remained quiet as regional mills are being cautious given recent price movements, but they are expected to increase orders from the US West coast in February.
As SteelOrbis reported on February 7, Taiwan purchased an ex-US containerized HMS I/II 80:20 scrap at $235-237/mt CFR. While other Taiwanese buyers' price ideas for the same product were heard to continue in the low $230’s/mt CFR, ex-US scrap offers to Taiwan are now being heard firming up on the upper side of the range previously reported at $240-245/mt as domestic prices are showing resilience during the buy-cycle this week. Additionally, Taiwan mills have been heard placing unmet bids of $250/mt CFR for H2 grade scrap in the Japanese scrap export market. While Japanese traders were heard lowering scrap price expectations, per a source, “Even then, this offer price is lower than their target prices. Last Friday it may have been possible but today all prices are likely to firm up.”
Mills in South Korea and Vietnam are waiting for further market confirmation before making scrap bookings as Japanese scrap auctions are still trading.
Sources state that South Korea and Vietnam secured sufficient inventories for February production. South Korean mills are expected to book deep sea orders for April production while mills in Vietnam are expected to become more active in purchasing scrap for March production.
US offers prior to the Chinese New Year break were at $270/mt CFR South Korea for HMS I. The latest ex-US deal in mid-January was for HMS I at $279/mt CFR South Korea for March arrival. No active updated offers were heard during the holiday as demand was not existent, and rumors are that offers have only slightly softened to $265-270/mt CFR South Korea this week. CFR pricing is higher to South Korea compared to Taiwan due to high ocean freight costs.