STEEL SCRAP WRAP: Asian prices diverge from subdued Turkish market
Global scrap prices in the key markets diverged in the week to Friday June 18, with those in Asia moving upward, while Turkish scrap prices fell amid slow buying driven by uncertainty over finished steel sales.
- Turkish buyers had to pay a premium for US-origin shredded scrap
- US export market reported new sales to Turkey
- Solid demand in Vietnam resulted in higher prices
- China reported stability in imported scrap prices
- Competition for scrap on the Taiwan market was linked to higher prices
- Indian scrap prices moved up despite weaker sentiment.
Turkish steel mills booked just two cargoes this week, on the same day, with prices moving down by $10 per tonne from June 11. Mills were said to be keen to obtain sales of finished steel before booking further scrap cargoes.
Export prices for HMS 1&2 and shredded scrap sold to Turkey from the US East Coast took different directions in two cargo sales reported early this week. A clear preference has emerged for shredded material, which went for $7 per tonne more than in recent sales, while HMS prices were down by $2-3 per tonne.
The spread between HMS and shredded, typically $5 per tonne, widened to $19-20 per tonne on the basis of these sales, with domestic mills’ own significant appetite for the latter grade forcing Turkish importers to pay more for shredded material.
Prices have increased amid stable demand for US- and Hong Kong-origin materials, and higher Japanese offers.
steel scrap, HMS 1&2 (80:20), cfr Vietnam.
Prices in China were largely stable because the import arbitrage window remained closed.
steel scrap, heavy recycled steel materials, cfr China
Taiwanese buyers purchased cargoes at higher prices this week amid competition for supplies in the bulk-shipment markets.
Prices for scrap imported into India rose on active purchasing that tailed off toward the end of the week following a change in sentiment.
steel scrap, shredded, index, import, cfr Nhava Sheva, India.