According to sources close to the market, ex-US scrap prices and deals have encountered some pressure on the West coast through the week ended March 17 as a result of changes in the Asian scrap markets. Specifically, Japanese exporters have been heard lowering their scrap offers of H2 scrap at week’s end.
On March 15, SteelOrbis reported offers of HMS I/II 80:20 from the US West coast heard at $315-325/mt CFR Vietnam, $300-310/mt CFR South Korea, and $290-300/mt CFR Taiwan. Compared to late February/early March, these prices moved up approximately $20-25/mt on CFR Vietnam, $15-20/mt on CFR South Korea, and $20-25/mt on CFR Taiwan.
In mid-March, export offers for H2 scrap were heard at JPY 30,500-31,000/mt ($266-271/mt) FOB Tokyo Bay or approximately $305/mt CFR Vietnam. Japanese H2 grade scrap, which according to a source traditionally trades slightly higher than US origin HMS I/II 80:20 containers, was heard offered at approximately $300/mt CFR Taiwan.
A few low-volume deals have been heard closing in the US West coast for HMS I/II 80:20 at prices ranging from $278-280/mt CFR Taiwan. These prices reflects a price drop of $4/mt compared to deals at $278-284/mt CFR. According to a source, Vietnam has been purchasing significant amounts of scrap in the last three months with commitments into May and is not expected to purchase too much through March as it watches the market further. The source stated, “With the push downward by Taiwan, lower offers from Japan to the same markets, lower demand from Vietnam, and soft US domestic expectations for April, ex-US West Coast offers next week will likely adjust downward.”