US Market: Exporters are bound to reduce
offers
Few US scrap cargos
have been booked by customers in Turkey and the Far East amid a strong US
dollar and depressed steel markets overseas.
The euro has weakened relative to the US
dollar in recent weeks, With US domestic scrap prices trending down and soft
steel prices in Turkey.
Market sources anticipate that unless steel
demand in Turkey picks up, export scrap prices from the US are bound to
come down. Currently US origin scrap and EU origin HMS 1&2 scrap is being
offered at US$ 450/MT and US$ 440/MT CNF respectively.
Turkey Market: Delivery in June looks
slightly lower
International scrap market has traditionally
been function of Turkish activity. With sluggish demand for finished steel in
domestic as well as international market, Turkish mills remain quiet.
So, Turkish manufacturers are avoiding buying
scrap from the US at the moment and are instead looking to secure their scrap
needs through Europe instead. European HMS 1&2 offers to Turkey have dropped
about US$ 10-15/MT than current bulk US offers, which are unchanged in the last
couple weeks at US$ 440-445/MT CFR, with offer prices for shredded about
$5-10/MT higher.
Further, Billet and rebar prices under
pressure having seen correction to the range of US$ 20-25/MT during the last 1
month has put the mill on the back foot. Moreover it is learnt that most of the
mills are well stocked for May.
India
Market: No further correction anticipated on higher freight rates
Container scrap activities from the US East
Coast to India has also been extremely slow due to increases in container
rates a couple weeks ago. Though offers
reached low to US$ 450-460/MT CFR on weak buying interest from importers
Asia
Market: Scrap prices down on weak demand for Steel globally
From US West Coast, container scrap exports
were booked to Taiwan in early May at about US$ 430/MT CFR.
Steel demand in Taiwan and China is extremely
sluggish at the moment. Export prices from China and Taiwan for coated flat
steel products to the US dropped by US$ 10-$20/MT in the last week.
Taiwanese mills don't believe US export
prices have bottomed yet, according to export sources on the West Coast. But
while there still appears to be some room for prices to fall, prices may soon
be close to a bottom.
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