Presently, active offers of scrap from West Canada for HMS I/II 80:20 are $205-210/mt CFR China. From the US West coast offers to Taiwan for the same grade are heard at $197-205/mt CFR. This translates to approximately $185-$193/mt FAS (free alongside ship) from the Los Angeles area. Prices tumbled on the West coast also post the US September buy cycle results that cut deeper into the East Coast and Midwest than expected. In early September, West coast containerized HMS I/II 80:20 was at $207-210/mt CFR Taiwan, for example.
Glimpses of hope are showing for the West coast HMS I/II 80:20 scrap market, though, as containerized scrap import deals increased to $210-214/mt CFR Taiwan port and $210-220 CFR Indian port at the end of last week. These are reported prices paid by Taiwan and India for non-US imported scrap. West coast market sources close to SteelOrbis note, however, that US pricing is highly competitive at the moment and may be able to attract additional containerized scrap market deals from these countries as exporters do not have to compete with regional steelmakers for material. The US has lost scrap export market share over the last year due to the appreciation of the dollar. With the present dampened pricing, US exporters hope to regain some of that ground in the Asian markets.
Price for CFR Taiwan is believed to have risen as a result of mill’s uncertainty around scrap supply, even though their domestic situation for finished long products remains uncertain. On the other hand, price for CFR India is believed to have increased from $208-210/mt the previous week due to a strengthening domestic steel market.
Meanwhile in the Caribbean, SteelOrbis has received confirmation of a deal done this week from the Dominican Republic to South Korea for HMS I/II 80:20 at $205/mt CFR.