American bulk scrap prices have risen sharply in the East Asian market, consistent with rising and bullish sentiment in the international market. A recent U.S. scrap HMS deal in South Korea costs about $45 a tonne more than three weeks ago.
South Korean traders said Dongguo steel ordered 35,000 tonnes of heavy molten scrap from the west coast of the U.S. for $443.50 per ton CFR late last week and will arrive in April. Earlier, another South Korean steel plant ordered U.S. scrap at $398 a tonne CFR late January.
Some market participants in South Korea may be surprised by the price jump. “Domestic scrap prices are much lower,” said a trader in Seoul. He believes that the deal was made after Turkey’s import price of scrap steel reached per ton CFR Turkey. A regional trader said the previous transaction price of $398/ton CFR was too low. “The market has really changed and scrap prices in Japan have risen sharply,” he commented.
On Monday, Japan’s mainstream H2 scrap price was $430 per ton CFR Vietnam, compared with $425 per ton late last week CFR Haiphong Port. Regional traders say the prices are lacking as Japanese scrap suppliers expect to jump further.
China’s import purchases contributed to a bullish regional market. P&S scrap from Europe and grade HS scrap from Japan (similar to P&S) sold for $470 a tonne last week CFR china. One Singaporean trader said the current offer for scrap HS Japan is $480 per ton CFR. He think the Chinese importer will consider to pay the price of usd 475/ton V this week.
At the same time, Tokyo Iron and Steel Company once again raised scrap purchase prices. From 23 February, the company raised the price of H2 scrap from trucks to its Yudu Gong steel plant by 500 yen ($5 per ton) to 39,500 yen ($375 per ton). Japan’s leading arc furnace operator raised scrap prices four times this month, raising a total of 10,500 yen per ton ($100 per ton). Earlier, since January 29, H2 scrap prices have remained at 29,000 yen per ton.
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