According to sources close to SteelOrbis, the export scrap market has moved up considerably through March.
Ex-US deals for HMS I/II 80:20 were heard at $303/mt CFR Turkey and for shredded scrap at $305-310/mt CFR Pakistan and $308/mt CFR Nhava Sheva (India) this week. On the West coast, deal prices on HMS I/II 80:20 were heard at $315/mt CFR Vietnam and $278-284/mt CFR Taiwan.
Given the increased prices, sources note that additional US scrap has become available on offer for export in the last week. With the high volume of scrap on offer, ex-US offers of HMS I/II 80:20 at $310/mt CFR Turkey, ex-Baltic offers of HMS I/II 80:20 at $305/mt CFR Turkey, Russian offers of A3 material at $290/mt CFR Turkey, and many scrap sellers in the EU targeting $300/mt CFR Turkey for HMS I/II 80:20, sellers are expressing uncertainty on whether deal prices can increase from the present levels. Sources report that Turkish mills are calling the offer prices unworkable.
An important factor for Indian buyers’ sourcing decision will be the second increase in freight rates for container shipments from Northern Europe and the UK to India in April. The increase is approximately an additional $15/mt cost on scrap from those origins unless scrap buyers adjust FAS prices downward. A source noted, “The UK may adjust prices downward, affecting their domestic prices that also increased in March, or if not, Indian buyers may shift those orders to the US. We hear scrap stocks in India are low.” This month an ex-UK deal for 15,000 mt was heard at $311/mt Nhava Sheva while another deal was heard for 500 mt at $315/mt CFR Nhava Sheva.
A separate source stated, “We hear India has purchased containerized HMS I/II 80:20 scrap at $280-290/mt CFR and shredded scrap at $308-310/mt CFR, but they may get to the point of needing much more volume.” US offers for shredded scrap to India are presently at $315-325/mt CFR Nhava Sheva against offers from other origins at $310-320/mt CFR Nhava.
On the West coast, Taiwan has encountered a reduced rate of increase compared to other regions because mills have comfortable scrap stocks and are being cautious according to sources. Several mills have been heard increasing the prices of finished steel goods in the past week, but concern about market adoption is keeping import scrap purchases limited. South Korean and Vietnam mills are heard planning for late April and May scrap shipments.