Offers for ferrous
scrap of US suppliers have increased after New Year holidays due to healthy
demand for the material in both domestic and global market.
“A large size scrap
supplier in the US offered the container HMS (80:20) quotes at US$ 480/MT CFR Taiwan
yesterday, higher than US$ 470/MT CFR from the previous export offer”, said a
market participant.
“US steel mills hiked
the scrap prices by US$ 30-50/MT in the domestic market after Christmas and New
Year holiday, pushing up scrap export prices”, he added.
However, the sharply
surged scrap prices were unfavorable to Taiwanese steel mills.
Turkish scrap prices for HMS (80:20) also rose this week to US$
470/MT CFR Turkey, up by US$ 4-5/MT last week. Shredded scrap prices remained
same as 475/MT CFR Turkey. Producers were caught out by high scrap prices at
the end of 2011. The higher raw material prices will be passed on to consumers.
According to a market source, “Turkish
rebar producers are expected to raise both domestic and export offer prices to US$
700/MT next week because of the higher ferrous scrap prices being demanded by
US suppliers.”
Ferrous scrap offers to India remain
unchanged for the day at US$ 440-445/MT CFR Mumbai for HMS (80:20) and shredded
material at US$ 455-465/MT CFR Mumbai.
“Offers
to India are likely to remain firm in the coming weeks as European suppliers
have resumed selling ferrous scrap with high prices due to healthy demand in the global
market. Prices from other export countries have also surged due to current
global competition”, said an importer based in Mumbai.
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