WEEKLY SCRAP WRAP: Global spot demand rises on increasing prices
Turkish steel producers continued to purchase deep-sea cargoes on an easing of the restrictions under Covid-19 measures in the working week ended Friday June 5. Demand in the key import markets of Taiwan and Vietnam remained stable amid limited supplies from the United States and Japan while the Indian market continued its recovery.
- Turkish purchases continue
- US exporters see brisk spot trade
- Vietnam continues to purchase on strong demand
- Electricity rationing in Taiwan fails to limit price rises
- India continues recovery.
Spot-market demand in Turkey was strong this week due to the easing of Covid-19-related measures in the country. Steel mills were actively purchasing cargoes from the United States, Canada and the Baltic Sea region.
Turkish steel producers booked at least five deep-sea cargoes totaling 150,000 tonnes this week.
Import prices inched up throughout the week on a recovery in steel demand, as well as announcements of support packages by local banks. The number of Covid-19-related deaths in the country has also dropped.
The US ferrous scrap export market showed brisk spot activity off both coasts of the country, with Turkey, India, Pakistan and Taiwan all purchasing materials.
Spot prices continued to increase in the key import market of Vietnam on steady procurement by local steel mills. Offers of deep-sea HMS 1&2 (80:20) cargoes were heard at $275 per tonne cfr Vietnam. There was market chatter about a transaction at $265-270 per tonne cfr Vietnam, but this could not be confirmed at the time of publication.
steel scrap, HMS 1&2 (80:20), cfr Vietnam.
Import prices for ferrous scrap in Taiwan continued to increase over the week due to stable demand and tighter supply. Transactions for containerized cargoes of HMS 1&2 (80:20) from the US West Coast were concluded at $238-240 per tonne cfr, up by $5-6 per tonne from $233-234 per tonne week on week.
The price of containerized ferrous scrap imports into India maintained its upward momentum with the market on the easing of Covid-19-related lockdown restrictions. Most market sources reported offers for shredded material at $280-285 per tonne, up from $270-285 per tonne last week.
steel scrap, shredded, index, import, cfr Nhava Sheva, India.