STEEL SCRAP WRAP: Strong finished steel demand, limited supply boost prices
Improving demand for finished and semi-finished steel products across the major outlets has increased scrap prices in the major markets over the week to Friday November 13.
Turkish mills continued to pay more for deep-sea scrap cargoes, because they have secured a lot of rebar sales, while demand for billet in China drove up the prices in Asia. The supply of scrap, however, was tightening and supporting higher prices.
- Turkish steel mills book three deep-sea cargoes at escalating prices
- US scrap prices rise with a further increase expected
- Strong demand for Vietnamese billet in China pushes up scrap prices
- Tighter supply together with container freight problems raise Taiwan import scrap prices
- India reports higher prices on material shortage.
The Turkish steel mills resumed their deep-sea scrap purchases at higher prices this week with support from strong finished sales of long steel.
The country’s steelmakers booked three dee-sea cargoes early in the week, raising the HMS 1&2 (80:20) price to $306.50 per tonne cfr late on Wednesday from $305 per tonne cfr on Tuesday.
But suppliers raised their offers to Turkey to $320 per tonne cfr later in the week, pushing buyers away from the market for the moment.
The US ferrous scrap export market has leapt past the $300-per-tonne threshold price for HMS 1&2 (80:20), with the latest sales to Turkey at $305-306.50 per tonne cfr. Market participants expected further increases in prices with strong rebar export sales out of Turkey.
Scrap import prices into Vietnam increased sharply amid a strong upturn in the Japanese market and firm demand for Vietnamese billet in China this week.
steel scrap, HMS 1&2 (80:20), cfr Vietnam.
Import prices in Taiwan were boosted by limited offers and freight problems during the week. A shortage of containers, together with a spike in exports from China, has led to container shipping lines increasing the prices for scrap shipments in recent weeks.
Prices in India moved higher due to the material shortage before the market fell quiet ahead of the Diwali religious celebrations.
steel scrap, shredded, index, import, cfr Nhava Sheva, India.