US West coast export scrap target markets such as South Korea, Taiwan and Vietnam have been heard obtaining Japanese H2 scrap at lower prices than US origin scrap, although further buys at those prices are unlikely according to sources as H2 prices are increasing on domestic Japanese demand and tight supply. The unknown variable is the likelihood of mills in these markets to make large purchases from China instead of from Japan or the US. US HMS I/II 80:20 transactions tend to trade slightly below Japanese H2 transactions.
Low volume deals from the US West coast for containerized HMS I/II 80:20 have been heard at $235-240/mt CFR Taiwan with prevailing offers at $240-245/mt CFR Taiwan. According to a source, offers are limited in the market, but given the Taiwan reference point, offers are estimated at $245-250/mt CFR South Korea and $260-265/mt CFR Vietnam for containerized HMS I/II 80:20.
Offers on HMS I/II 80:20 bulk from the West coast are being heard at $260-270/mt CFR South Korea and CFR Taiwan while at $275-285/mt CFR to Vietnam.
Expectations for US domestic scrap pricing is providing some support to the US West coast export market. According to various sources close to SteelOrbis, the US domestic scrap market is expected to predominantly trend sideways in June. Although, some regions such as the South are being heard expecting possible increases.