WEEKLY STEEL SCRAP WRAP: Global trading activity slows; sentiment sours
There was a noticeable dip in trading in the Turkish deep-sea markets in the week ending Friday June 19 although prices remained firm.
Slower buying activity was also noted on the Taiwan, Vietnam and Indian markets amid the possibility of lower prices. The US market was the expectation to this.
- Purchases begin to slow on Turkish market
- US export market reports deals from West and East coast
- Vietnam trading stumbles as prices dip
- Taiwan demand tempers off amid higher supply
- Confidence draining from Indian market
Purchases of deep-sea cargoes by Turkish steel mills were notably slower this week, with just two cargoes booked, both of US origin, compared to 12 bookings heard last week.
Prices remained firm, however - the market is now expecting a downturn to result from this slowdown in purchasing.
- Steel scrap HMS 1&2 (80:20 mix), Northern Europe origin, cfr Turkey
- Steel scrap HMS 1&2 (80:20), US origin, cfr Turkey
US ferrous export market participants reported higher prices on recent sales from the West and East coasts to Turkey and South Korea.
- Steel scrap HMS 1&2 (80:20), export index, fob New York
- Steel scrap shredded scrap, export index, fob New York
- Steel scrap, HMS 1&2 (80:20), export index, fob Los Angeles
Import prices dipped this week, with the purchasing of material slowing amid buyers awaiting further falls.
Taiwanese buyers of containerized ferrous scrap slowed their purchases of imported material, which kept prices flat amid falling offers and increased supply.
Indian market participants reported a dip in prices this week after a change in sentiment that reflects the continued pause in trading, which is causing some to lose faith in earlier expectations about a recovery.