The export prices for scrap out of the US continued their upward trend this week on steady demand from Southeast Asia, although demand from Turkey was sluggish due to that country’s weak finished steel market.
Turkey imports
Turkish long steel mills have imported only one deep-sea cargo in the past week and the transaction supported the firm prices.
A steel mill in the Iskenderun region booked a US cargo, comprising 20,000 tonnes of HMS 1&2 (80:20) at $327 per tonne, 7,000 tonnes of shredded at $332 per tonne and 3,000 tonnes of bonus at $337 per tonne cfr late on October 2.
The cargo was scheduled to be shipped in October, and compared with a previous US deal heard in early September at $319 per tonne for HMS 1&2 (80:20) and another last week, sold out of the Baltic Sea, at $322 per tonne cfr for similar material.
Apart from the latest US deal, Turkish steel mills stayed away from deep-sea scrap bookings in the rest of the week due to the high offers from US suppliers.
One US scrap merchant was offering HMS 1&2 (80:20) at $330 or $333 per tonne cfr, a number of sources reported. But another supplier in the country was offering similar material at more expensive prices, one Turkish source said.
“Scrap prices are still firming but rebar and billet prices are going in the opposite direction. I can’t find anything to say any more,” a Turkish mill source said.
A steel mill in the Izmir region sold rebar to Europe at $495 per tonne fob on actual weight and to Lebanon at $497-498 per tonne. Another mill in the Marmara region sold billet to Algeria at $477 per tonne fob, the mill source said.
Turkish offers for rebar were $500-505 per tonne fob and for billet were $490-495 per tonne fob, Fastmarkets reported on October 4.
US exports
Ferrous scrap export prices in the US have risen on both the country’s West and East coasts, with bulk and containerized scrap prices improving on steady demand from buyers in the Indian subcontinent and Southeast Asia.
Four cargoes – one from the West Coast and three from the East Coast – have traded to Asia and Turkey over the past seven days.
The West Coast sale by an exporter in Portland, Oregon, on September 28 was for a 30,000-tonne cargo containing shredded scrap at $362 per tonne cfr and HMS 1&2 (80:20) at $357 per tonne cfr.
Containerized HMS 1&2 (80:20) prices on the West Coast were moving steadily higher. Market participants put prices at $320-325 per tonne fas, up from $315-320 per tonne the previous week.
On the East Coast, a cargo containing 35,000 tonnes of shredded scrap and HMS 1&2 (80:20) was sold to Bangladesh late last week, with the grades priced at $315 and $310 per tonne fob respectively.
Two additional East Coast bulk sales were made on October 2 to South Korea and Turkey. The Turkish deal was done at $327 per tonne cfr for HMS 1&2 (80:20) and $332 per tonne cfr for shredded scrap.
The South Korean cargo deal, which concluded at $355 per tonne cfr, contained 30,000 tonnes of shredded scrap, 10,000 tonnes of HMS 1&2 (80:20) and 5,000 tonnes of bonus-grade scrap.
“There are not enough cargoes on the [US] West Coast right now; otherwise, [buyers] wouldn’t look [for material from the East Coast]. There are not only one or two buyers looking for cargoes on the East Coast, there are a handful… We are seeing interest from Bangladesh, Vietnam and Indonesia,” an export source said.
Containerized shredded scrap prices on the East Coast rose to $325-335 per tonne fas, up from $320-330 per tonne fas a week before.
Taiwan, Vietnam imports
Import prices for scrap in Taiwan continued to move up this week on steady demand from steelmakers, while those in Vietnam held steady amid buyer resistance toward higher offers from the US.
A transaction involving a 5,000-tonne cargo of HMS 1&2 (50:50) from Europe was concluded at $357 per tonne cfr southern Vietnam.
Market sources said that this cargo fetched a higher price due to the seller getting more favorable credit terms from the buyer. Traders said that, under normal conditions, the cargo would have changed hands at $350-355 per tonne cfr southern Vietnam.
At least 11,000 tonnes of HMS were sold from Southeast Asia and Macau to southern Vietnam this past week, but transaction prices could not be confirmed.
Vietnamese buyers continued to steer clear of Japanese H2 scrap due to the availability of cheaper deep-sea cargoes.
Japanese scrapyards indicated offers for H2-scrap at ¥۳۷,۰۰۰ per tonne fob, equivalent to about $324 per tonne fob Japan and $360-362 per tonne cfr Vietnam after including a $35-37 per tonne freight rate.
A transaction involving 45,000 tonnes of scrap from the US East Coast concluded by a major South Korean steel mill did not affect sentiment in Vietnam because the purchase price – $355 per tonne cfr South Korea – was similar to the latest two deals heard in late September, which were concluded at $355-358 per tonne cfr.
In the meantime, US cargoes were offered to Taiwan at $340-348 per tonne cfr this week, compared with $338-340 per tonne last week.
Transactions were being negotiated around $335-340 per tonne cfr Taiwan.
A major end-user bought 5,000-6,000 tonnes of imported scrap at $335-340 per tonne cfr.
Demand for scrap among steel mills remained good despite suppliers’ higher offers.
“Major suppliers in the US have increased their offers this week because they are able to sell at higher prices to the key importing market, Turkey,” a Taiwanese trader said.
India imports
Prices for shredded scrap imported into India moved down this week due to the weak rupee.
No deals were heard for shredded material this week due to the poor trading situation, but material was being offered at $355-360 per tonne cfr Nhava Sheva, a $10 per tonne reduction from deals done last week at $360 and $365 per tonne cfr.
Some traders this week had chosen to sell their shredded material into Pakistan instead of India, because prices were reportedly higher.
The Indian currency finished the week trading at 73.86 rupees to $1 on October 5, compared with 72.58 rupees to $1 on October 1, according to website Oanda.com.
“Prices should come down for scrap offers soon. [The rupee’s low value is a major reason why] prices for finished products are down,” a buyer said.
“The rupee has depreciated quite a bit. There is absolutely no buying, a seller said. “[The price of] finished material is down by $40 [per tonne]. No one is even counter-offering – everyone is out of the market. Domestic prices are also coming down.”
Only one deal for UK-origin HMS 1&2 (80:20) was heard this week, done at $330-335 per tonne cfr. Offers had softened to lower levels than last week, with material offered from South Africa and the United Arab Emirates at $340-345 per tonne cfr.
Turkey domestic
Turkish domestic prices for auto bundle and shipbreaking scrap remained stable at the beginning of the week but the pressure on them was increasing because of falling prices for finished and semi-finished steel and a strengthening of the country’s lira.
“Prices for domestic scrap seem to be stable but a number of mills have already reduced their prices in line with the strengthening lira and falling finished steel prices,” a Turkish mill source said on October 1.
“I think the prices could show a downturn in the coming days unless we see a recovery in the finished steel market,” she added.
Reference: metal bulletin
این مطلب بدون برچسب می باشد.
ثبت دیدگاه