Suppliers talk up scrap prices in east Asia
Scrap import prices continue their uptrend in east Asia. While traders are bullish that scrap prices can move up further, weak finished steel prices are likely to limit any large increase, trading sources tell Steel Business Briefing. Three cargoes of US west coast scrap were booked at $325/tonne cfr for shredded, and $320/t cfr for 80:20 HMS 1/2 last week, according to Chinese trading sources. Fresh offers of HMS 80:20 are prevailing at around $335/t cfr China and for shredded, $340/t cfr. "There are a lot of buying enquiries from China, and they include speculators," says a Chinese trader who believes that the current acceptance level is $330/t cfr for 80:20. "There are no buyers at the new offer prices," another says. But he admits that "nobody knows" if Chinese importers will keep chasing after higher prices. Scrap availability is tight after many US suppliers sold out their January shipments, a Korean trader says. An estimated 400,000 t were booked by Chinese importers from mid-October to November. He tells SBB that HMS 1 prices could rise to $350/t cfr by mid-December. "Suppliers are shouting higher numbers," a Southeast Asian importer says. He attributes recent buying to stocking up ahead of the holidays and year-end, but believes that it will quieten down when mills cut output and undergo maintenance. Offers for containerised 80:20 scrap from Africa and the Middle East are at $300-305/t cfr SE Asia but some material was booked at under $295/t cfr recently, SBB is told. Also, containerised 80:20 from South Africa concluded at $305/t cfr Haiphong, Vietnam.
Indian iron ore offer prices to China rise, transactions low
Indian iron ore offer prices to China rose last week to levels of $110/tonne cfr for fines of 63.5% Fe, but supply of ore from India is still tight with hardly any transactions concluded in the past week. The hike in price is mainly due to an increase in freight rates between the two countries. Steel Business Briefing hears of one transaction for a 50,000t parcel of Fe 63.5%/63% fines in a Handymax carrier from Krishnapatnam port in the southeast Indian state of Tamil Nadu at $104/t cfr on a single loading basis. "No bookings of new material are being heard of," a trader based in Bellary in the southern state of Karnataka tells SBB. "The parcel from Krishnapatnam was old material that had been lying at the port for over eight months." He added that freight for iron ore from east India to main Chinese ports had gone up to as much as $24/t on a single loading basis, from around $20-22/t. Double port loading freight has increased to levels of $25-26/t. "Chinese mills and traders are waiting as they are reluctant to buy at such high prices even though the Indians remain bullish about their offers," a Delhi-based trader says. "Prices may come down marginally this week or early next week." Lower grade ore from the western territory of Goa remains in demand. SBB hears of 58% Fe fines sold at $56/t fob on a two port loading basis with a freight of $25/t.
Scrap import prices continue their uptrend in east Asia. While traders are bullish that scrap prices can move up further, weak finished steel prices are likely to limit any large increase, trading sources tell Steel Business Briefing. Three cargoes of US west coast scrap were booked at $325/tonne cfr for shredded, and $320/t cfr for 80:20 HMS 1/2 last week, according to Chinese trading sources. Fresh offers of HMS 80:20 are prevailing at around $335/t cfr China and for shredded, $340/t cfr. "There are a lot of buying enquiries from China, and they include speculators," says a Chinese trader who believes that the current acceptance level is $330/t cfr for 80:20. "There are no buyers at the new offer prices," another says. But he admits that "nobody knows" if Chinese importers will keep chasing after higher prices. Scrap availability is tight after many US suppliers sold out their January shipments, a Korean trader says. An estimated 400,000 t were booked by Chinese importers from mid-October to November. He tells SBB that HMS 1 prices could rise to $350/t cfr by mid-December. "Suppliers are shouting higher numbers," a Southeast Asian importer says. He attributes recent buying to stocking up ahead of the holidays and year-end, but believes that it will quieten down when mills cut output and undergo maintenance. Offers for containerised 80:20 scrap from Africa and the Middle East are at $300-305/t cfr SE Asia but some material was booked at under $295/t cfr recently, SBB is told. Also, containerised 80:20 from South Africa concluded at $305/t cfr Haiphong, Vietnam.
Indian iron ore offer prices to China rise, transactions low
Indian iron ore offer prices to China rose last week to levels of $110/tonne cfr for fines of 63.5% Fe, but supply of ore from India is still tight with hardly any transactions concluded in the past week. The hike in price is mainly due to an increase in freight rates between the two countries. Steel Business Briefing hears of one transaction for a 50,000t parcel of Fe 63.5%/63% fines in a Handymax carrier from Krishnapatnam port in the southeast Indian state of Tamil Nadu at $104/t cfr on a single loading basis. "No bookings of new material are being heard of," a trader based in Bellary in the southern state of Karnataka tells SBB. "The parcel from Krishnapatnam was old material that had been lying at the port for over eight months." He added that freight for iron ore from east India to main Chinese ports had gone up to as much as $24/t on a single loading basis, from around $20-22/t. Double port loading freight has increased to levels of $25-26/t. "Chinese mills and traders are waiting as they are reluctant to buy at such high prices even though the Indians remain bullish about their offers," a Delhi-based trader says. "Prices may come down marginally this week or early next week." Lower grade ore from the western territory of Goa remains in demand. SBB hears of 58% Fe fines sold at $56/t fob on a two port loading basis with a freight of $25/t.
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