Though some scrap price recovery has been expected this week, Asian customers have managed to get lower offers and have been actively purchasing the raw material, understanding that it likely that prices have reached the bottom. Two major Korean importers Hyundai Steel and Dongkuk Steel have signed contracts with the leading US suppliers for H1 scrap at $244/mt CFR and $245/mt CFR respectively. The total volumes of the deals have been about 75,000 mt for shipment in December-January. The prices have been $36/mt below the previous transactions from US to Korea a month ago.
Prices for Japanese H2 scrap have been in line with last week – JPY 24,000/mt ($224/mt) FOB, so Korean customers have been not interested in purchases, booked at this level last week.
Taiwanese buyers have also purchased large volumes of ex-US HMS I/II 80:20 in containers close to $220/mt CFR, as SteelOrbis reported earlier this week.
Offers for HMS I/II 80:20 ex-US and ex-EU have been coming to Vietnam at $250-255/mt CFR, $10-15/mt below last week. At the same time, traders reported about some deals for Japanese H2 scrap at $245-250/mt CFR, which is in line with customers’ bids last week.
Most market sources believe, that offer prices will start to recover next week as suppliers have already booked big volumes and prices have reached the point as which scrap collection will be unprofitable.