Major scrap suppliers to Asia have been increasing prices further this week, while customers have been mostly reluctant to buy sizable tonnages, though some demand has been seen for ex-US raw material.
Offer prices for ex-US HMS I/II 80:20 in containers to Taiwan have gained again, rising by about $5/mt as compared to last week to $245/mt CFR on average. Some offers have started to be given even above this level. “Quotations can reach $250/mt CFR next week, I suppose,” a Taiwanese steel producer told SteelOrbis. Nevertheless, buying activity has lowered in Taiwan, following the recent prices increase and there have been reports of sales of only small tonnages of 1,000-2,000 mt each at $240-245/mt CFR this week. Bookings were at the average of $238/mt CFR last week.
Japanese suppliers have also been following the uptrend: offers for H2 scrap have increased by JPY 1,000-1,500/mt ($9-14/mt) week on week to JPY 24,000-24,500/mt ($222-227/mt) FOB, sources said. Demand from South Korea for Japanese scrap has been still very limited due to still weak local scrap prices and subdued finished steel demand.
Ex-Japan quotations have increased too rapidly, and so they have failed to attract the interest of customers in Vietnam. Vietnamese buyers have received offers for ex-Japan H2 scrap at $260-265/mt CFR, $10-15/mt above the level in mid-October. There has been a rumour that a sale for HMS I/II (80:20) was concluded at $260/mt CFR Vietnam in the middle of last week, but offers have increased to $265-270/mt CFR for this grade from US this week and “buyers are getting cautious,” an international trader said.
$1 = JPY 108.024