WEEKLY SCRAP WRAP: Global price direction mixed
Pricing directions were mixed around the globe this past week as Asian scrap prices continued to rise, Turkish pricing began to soften from recent highs, and the US market held strong sideways expectations for May.
Workable prices for Turkish import scrap softened towards the end of a quiet week, down to $252.50/mt CFR for premium heavy melting scrap 1/2 (80:20).
Turkish mills are looking to pull down workable levels for further scrap deals, amid persistent poor finished steel demand, but continued slow scrap collection rates in key scrap exporting regions may limit the downside, market participants said.
In the US, sentiment for May pricing is strong sideways on obsolete grades, and firm on primes as industrial production remains disrupted due to coronavirus effects.
The outlook for US mill demand has remained tepid, but scrap supply was heard to still be weak as well.
Asian scrap prices continued higher with offers rising yet again for Japanese and US cargoes, market sources said.
Multiple Japanese H1:H2 50:50 bulk deals to Taiwan were heard at $235/mt CFR Thursday, up $10/mt from deals a week ago, market sources said.
In the container market, a flurry of USWC HMS I/II 80:20 deals to Taiwan also ranged higher at $223-$227/mt CFR Thursday. Tradable values were largely cited at $227/mt CFR Friday.
The outlook appears more uncertain, as US suppliers were heard targeting higher prices while some mill inventories were also heard stocked up for June from previous purchases.
The Indian import scrap market remains quiet, with tradable values heard at $260/mt CFR for containerized shredded scrap. Scrap import activity into Pakistan and Bangladesh remains more active, market participants said.
Indian buyers’ concerns remain focused on trying to clear stocks still stuck at the port, with many also hoping for an extension of waivers of port demurrage charges until May 30.
The UK domestic scrap market is also quiet, with inflow into yards still extremely limited.
-- Staff
