Posted on 08 Dec 2020
US scrap trading, which started in the middle of last week, is expected to continue in the initial days of the current week as some mills are yet to complete their required purchases.
Prices have seen a sharp increase in the US market, as expected. The hikes have been triggered mostly by strong steel demand and increasing capacity utilisation in the US, as well as sharp price increases seen in export destinations and firm scrap demand versus tight supply.
“Mills in the Midwest came in with very strong demand; I haven’t seen such wild trading in recent years,” one scrap supplier tells Kallanish.
A supplier in the US South says: “The situation in the South is not different. Mills are paying $400/gross ton for HMS 1 here. Prices are up by $70-80/gt.”
On the West Coast, the number of US-origin containerised cargoes was quite limited in Taiwan, causing ex-Japan offers to jump. However, ex-Japan offers were also scant as most suppliers withdrew last week to observe Japan's Kanto Tetsugen tender outcome this week.
The Japanese offers, which were only a few, as a result, increased by $25/tonne in a week. The limited number of containerised offers from the US West Coast increased to $335-340/t cfr Taiwan for HMS 80:20. This was up from $320-325/t cfr a week earlier.
On the East Coast, US suppliers stayed out of Turkish market. Some are heard to have concluded scrap sales to Latin America, Egypt and Greece, where they were able to secure higher prices.
A US supplier was unable to find a buyer for its offer at $362/t cfr Turkey for HMS 80:20 on 27 November and directed its cargo on 30 November to Egypt where it found a buyer.
Following the two Baltic-origin scrap deals at $370/t and $375/t cfr Turkey for HMS 80:20 over the weekend, higher US domestic prices and bullish global sentiment are expected to lead US suppliers to target higher prices. They will be aiming for above $380-385/t cfr Turkey this week.
Source:Kallanish
