Scrap prices continue descent in Asia
Scrap prices continued to fall in East Asia during the last seven days, Kallanish notes.
A mill in southern Vietnam ordered on Monday this week a 30,000-tonne cargo of HMS 1&2 80:20 at $370/tonne cfr. The cargo is from USA and due for March shipment. This deal price is $20/t lower than the offer made by the same supplier two weeks ago.
Around the same time, a small bulk cargo of Australian 80:20 scrap sold at $360/t cfr Vietnam, Australian supplier sources say. But Vietnamese market sources are unable to confirm this deal. Australian bulk 80:20 bulk scrap was booked at $370/t cfr Vietnam two-to-three weeks ago.
In Taiwan, the container scrap market is quiet because of the weak rebar market. Importing mills are bidding at $330-335/t cfr Taiwan whereas US offers are prevailing at $340-345/t cfr Taiwan.
Earlier this week, leading EAF mill, Feng Hsin Iron & Steel reduced its HMS 1 scrap purchase price by TWD 200/t ($7/t) to TWD 9,900/t in Taichung.
“There is very little buying interest for scrap. Rebar prices are low and demand is weak,” a Taipei trader says. However, he is unable to get any supply for containerised 80:20 at $335/t cfr. Another Taiwanese trader says that the Taiwanese mill are bidding for higher grade scrap such as plate & structural and shredded scrap but not HMS this week.
US container HMS 1&2 80:20 scrap is assessed by Kallanish on Wednesday at $338-340/t cfr, down from last week’s $342-345/t cfr Taiwan.
Japanese scrap offer prices have also come down in Vietnam, Vietnamese trading and importing sources say. Most offers for H2 grade scrap are prevailing at $360-365/t cfr Vietnam compared to peaks of $375/t cfr Vietnam in the middle of January. Buying interest is very thin, a Hanoi trader discloses.
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Anonymous
Very good overview of the weekly steel market.
Anonymous