According to sources close to SteelOrbis, scrap prices continue to be under pressure on the US West coast due to lower import scrap deals by Turkey that have moved HMS I/II 80:20 to below $280/mt CFR Turkey, reduced export offers from Japan to the Asian region, and limited buying interest from Asian markets. Due to the global downward trend in scrap prices, sufficient incoming scrap from multiple recent scrap deals, and 2-3 week planned maintenance schedules throughout the region, Asian mills in Vietnam, South Korea and Taiwan are reportedly adopting a wait-and-see perspective prior to making additional scrap purchase commitments for May deliveries.
SteelOrbis reported on March 17 that Japanese H2 export scrap offers declined, and the trend has continued into the active week with export offers presently heard at JPY 28,500-29,500/mt ($257-266/mt) FOB Tokyo Bay. This price range has moved H2 scrap prices down by JPY 2000/mt on the bottom of the range and down JPY 1,500/mt on the top of the range from export prices reported for the week ended March 17. In dollar terms, due to exchange rate fluctuations, prices declined $9/mt from the bottom of the range and $5/mt on the top of the range from the $266-271/mt range previously reported.
Offers of H2 from Japan are presently heard at $295-298/mt CFR Vietnam, a decline of $7-10/mt from the $305/mt CFR Vietnam price level reported on March 17. This in effect has moved US offers of HMS I/II 80:20 scrap, which traditionally trade lower than H2 scrap, down $10-15/mt from $305/mt CFR Vietnam reported on March 17 to $290-295/mt CFR Vietnam. Other ex-US offers for HMS I/II 80:20 to Asia are being heard at $288-292/mt CFR South Korea, and $273-276/mt CFR Taiwan. According to sources, this translates to approximately $258-261/mt FAS US West coast port.
$1=JPY 110.99 (3/22/2017)
$1=JPY 114.58 (3/15/2017)