Ex-US scrap prices on West Coast get boost from Asian markets

Wednesday, 15 March 2017 10:29:36 (GMT+3)   |   San Diego
       

According to sources close to SteelOrbis, Asian ferrous scrap export prices have slightly increased based on higher domestic and international scrap prices, thereby boosting US West coast scrap prices as well.
 
On March 9, after the Japanese Kanto Tetsugen scrap auction, initial gauges for H2 scrap for export were at JPY 30,250-31,000 ($263-270/mt) FOB Tokyo Bay.
 
Presently, H2 scrap export price are heard at JPY 30,500-31,000/mt ($266-271/mt) FOB Tokyo Bay, up JPY 250/mt from the bottom of the range compared to last week. According to sources, South Korean mills are said to be claiming JPY 30,500/mt ($266/mt) FOB Tokyo Bay as too high compared to their own domestic price options, but sellers believe deals may be feasible in the higher range. Current offers for H2 are approximately at $305/mt CFR Vietnam which is equivalent to JPY 30,990/mt ($270/mt) FOB Tokyo Bay. The latest deal was heard at $295/mt CFR Vietnam two weeks ago.
 
Japanese traders are currently paying JPY 29,500-30,000/mt ($257-262/mt) FAS to acquire scrap for export, which reflects an increase of JPY 500/mt from prices heard a week ago. Additionally, domestic Japanese steel mills have been heard lifting domestic scrap buying prices for deliveries within the active week again. For the last three weeks, Japanese domestic mills have increased domestic scrap buying prices by JPY 2,000-3,000/mt ($17-26/mt) in aggregate based on global and domestic trends.
 
According to US sources, deals have been heard up in the range of $310-323/mt CFR Vietnam for various scrap grades originating from Australia and Japan, Russian A3 at $297-300/mt CFR South Korea, and US origin HMS I/II 80:20 reached $284/mt CFR Taiwan recently. "The US export scrap market is getting support from Asian market activity, but we are now hearing some potential retreat in finished goods prices in some of those Asian markets which may tame the scrap prices in the future," one US source said, also noting that the US domestic market is looking sideways for April.
 
Offers of HMS I/II 80:20 from the US West coast are currently being heard at $315-325/mt CFR Vietnam, $300-310/mt CFR South Korea, and $290-300/mt CFR Taiwan. Compared to late February/early March, these prices are up approximately $20-25/mt on CFR Vietnam, $15-20/mt on CFR South Korea, and $20-25/mt on CFR Taiwan.
 
$1=JPY 114.83 3/09/2017
$1=JPY 114.58 3/15/2017


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