The US West coast scrap prices are rallying as US domestic scrap prices are expected to increase $20-40/mt depending on region and grade and the global markets are showing increases in domestic and export scrap prices.
In East Asia, ex-Japan H2 scrap prices both domestically and for export are holding firm at $255-260/mt FOB Tokyo Bay. Alternative sources such as A3 from Russia is also being heard firming up. According to a source, as US bulk HMS I/II 80:20 scrap prices are considered too high by some South Korean mills, for the week ended February 24, a South Korean mill booked A3 scrap from Russia up $7/mt from the previous deal to $279/mt CFR.
Offer prices for bulk HMS I/II 80:20 scrap from the US are presently heard at $285-$295/mt CFR South Korea and $290-305/mt CFR Vietnam. On Feb 15, SteelOrbis reported offer prices from the US West coast for HMS I/II 80:20 at $270-275/mt CFR South Korea. The latest offers reflect an increase of $15/mt on the bottom of the range and $20/mt on the top of the range.
Bids are presently heard at $275/mt CFR South Korea and $285/mt Vietnam. Buyers are heard waiting for further market indicators prior to booking deals including the Japanese scrap tender by March 9 and the US Domestic settled prices that could be more robust than initially expected.