Last week the demand on the world market continued to increase, allowing traders to strengthen their position.
Turkish steelmakers, after returning to the market after the holidays, resumed its active replenishment. In such circumstances, the exporters almost daily announced price increase. In turn, the importers, given the decreasing supply from the EU and the USA, agreed to sign the contracts, taking the growth of quotations. So scrap grade HMS 1&2 (80:20) was trading at 395-407 $/t cif. However, some merchants refused to sell the material cheaper 410 $/t cif. More high-quality raw materials brand Shredded was quoted at 412-415 $/t cif. Such a significant rise in the cost of scrap from the EU and the US have forced many importers to switch import from Baltic ports. In the result, signed several deals to supply vysokokachestvennoj&S for 406 $/t cif.
In the Asian market price trend has also been rising amid very limited supply. South Korean buyers are bought American scrap HMS1 for 410 $/t cif. At the same time, raw material, HMS 1&2 (80:20) with delivery in Taiwan has risen to 402 $/t cif. In the Chinese ports of quotes of the same brand are 415-420 $/MT cif, while Japanese raw material H2 is available at 370-380 $/t cif. In the domestic market of Japan TokyoSteelповысил purchase quotes on all your plants for 6 to 17 $/t. Such obrabotany reached 328 $/t for the scrap grade H2. Interestingly, if in previous periods the increase in purchase prices for TokyoSteelобуславливал rise in export quotations, at the moment a causal link has changed (activation of exporters led to the outflow of raw materials to the ports, which forced local buyers to raise prices).
On the US domestic market scrap rate start to increase. So in most regions shredirovannogo implemented scrap at $390/MT cpt, which is 10 $ more than the price of previous contracts. Similarly, rose and scrap HMS1, due to the scarcity of this grade of scrap in most regions of the United States.
Thus, the global market activity remained at high level, however, weak demand for rentals makes the questionable prospects for long-term preservation of the upward trend.
Yuri Dobrovolsky,
The "Delphica"Project
HELP
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