Offers from US for ferrous scrap are moving up as
demand from the pacific region continues to increase. December's scrap export
market is bubbling, with East Coast exporters attempting to fill orders as quickly
as possible. West Coast exporters are seeing strong demand from the Pacific
Rim.
According
to an East Coast exporter at deep-sea port, “there is some caution that
the market has been too saturated and there could be a short-term regression of
prices. This could happen, but I think the demand in Turkey and low inventory
levels will prevent this from happening.”
The
recent deals were closed between US$ 450-460/MT for HMS 1&2 (80:20) CFR
Turkey. Shredded scrap was traded between 465-470/MT CFR Turkey.
Turkish
scrap importers are willing to procure material as the inventory levels are low
in the mills. Thus, exporters have raised their offers to fulfill the demand.
Offers to India remain at same price at US$
430-440/MT CFR Mumbai. Market participants are expecting some further
correction in the prices as no deals have been closed at such price level.
Importers are willing to close fresh deals with US$ 10-15 lesser than quoting
rates.
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