Scrap import prices bounce back in east Asia
Offer prices for imported scrap in Asia rose by $5-10/tonne over the past week. Offers for bulk shredded scrap are prevailing at $305-310/t cfr China and at $320/t cfr Southeast Asia. The offered price for 80:20 HMS 1&2 scrap is $300-305/t cfr China and $315/t cfr Southeast Asia. The last bookings of around ten cargoes of scrap to China were concluded around two weeks ago at $295/t cfr China for 80:20 and at $300/t cfr for shredded. "Offer prices may have risen because domestic prices are slightly higher," a trader in Shanghai says, adding that there have been no recent import bookings in China. "Higher iron ore prices are behind higher scrap prices in China," a regional trader says. Japanese scrap prices have also firmed, he notes, adding that Southeast Asian importers have no choice but to accept these prices if they want to book material. Containerised scrap prices have also risen by $5/t. Vietnamese trading sources say that bookings of 5,000-7,000 tonnes from USA/Europe were concluded at $287-290/t cfr for 80:20 and at $292-295/t cfr for shredded. Bookings in Taiwan for containerised 80:20 have risen to $285/t cfr, up from $280/t cfr a week ago. "Prices have bottomed out. I think prices will be stable at this level," a trader in Vietnam says. A US exporter said markets began to move up with Tokyo Steel's announced increase. "Things were getting very sour, and now they're starting to pick up," he told Steel Business Briefing.
Iron ore prices surge in China on tight supply
Constrained supply and active buying from Chinese traders saw iron ore prices surge towards the end of last week, with the price of Indian 63.5% Fe iron ore increasing by around $8/tonne over the course of the week. For the first time since mid-August when steel prices in China began to slide, Steel Business Briefing heard of a number of transactions at or in some cases above $100/dry metric tonne cfr to China. Prices had been around $92-95/t cfr on Monday and Tuesday of last week, up from $90-93/t the week before. SBB heard of a deal struck 5 November for one Panamax vessel carrying 75,000 tonnes of 63% Fe fine ore leaving Goa port bound for China, which sold for $82/t fob, with freight currently at around $18/t. A Chinese trader said he knew of one cargo of lower Fe grade selling at close to $102/t cfr China.
Chinese traders have complained of tight supply from India . exacerbated by vessel waiting times of up to 20 days at Haldia and Paradip . and iron ore output in Karnataka state severely reduced because of political disturbances. Furthermore, rising steel output in Japan and Korea is resulting in very little iron ore being put onto the spot market by major producers Rio Tinto, BHP Billiton and Vale. "There is just nobody else to take up the slack," a China-based analyst told SBB. Chinese traders said bullish market sentiment on the back of rising steel prices, and the need for iron ore to be stocked ahead of winter, also contributed to active purchasing last week.
Korean scrap market may rebound in November
Deliveries of domestic scrap to Korean steel mills slowed down last week. Local dealers are anticipating that domestic scrap prices may stay stable in the coming weeks after Hyundai Steel's five consecutive price reductions since mid-September. Moreover, the uptrend in Japanese domestic scrap prices will lift its exports prices to Korea so this will help strengthen Korean domestic scrap prices in November, Steel Business Briefing learns from local scrap dealers. But the high volume of imported scrap inventory at Korean yards may delay any near-term improvement in the current sluggish Korean scrap market. Korea's scrap imports in October reached an all-time high of 883,600 tonnes. "We still need to monitor how Japan's scrap price hike will affect the Korean domestic market," a scrap trader tells SBB. Japan's scrap market leader Tokyo Steel Manufacturing has increased its domestic scrap purchasing prices by ¥1,000/t for all grades at all works effective 6 November. Meanwhile, in late October Korean government's public procurement service (PPS) booked 40,000 t of US scrap as an initial purchase to build up a national scrap stockpile near Dongbu Steel's Asan works at Dangjin south of Seoul. The cargo comprises 10,000 t of shredded, 24,000 t of HMS No.1 and 6,000 t of HMS No.2 and these were booked at $317/t cfr, $312/t and $307/t respectively.
Iron ore prices keep rising during the week: The Steel Index
The latest daily iron ore reference prices released by The Steel Index last Friday show that the price for 62% Fe content iron ore has been moving steadily higher during the week and ended more than 8% above the previous Friday's level. Average weekly freight rates from India were almost unchanged, but rates on the other two key routes to China increased strongly during the week. The reference price for 62% Fe content iron ore fines finished the week at $95.60/dry metric tonne CFR Tianjin port, China. This was a $7.20/dry metric tonne increase from a week earlier. The reference price for 58% Fe content fines also moved generally higher during last week, and ended $7.20/dmt above the previous week's level, a 9% increase. Within the delivered prices, rates for shipments from both the West and East coasts of India were stable. Freight rates from Australia and Brazil to China continually firmed during the week, pushing the weekly average higher, with daily rates increasing around 12% from a week earlier. The Steel Index is majority-owned by Steel Business Briefing and specialises in compiling steel and iron ore reference prices based on actual transaction data. Further details of the methodology and specifications for the two grades of iron ore can be found on the website www.thesteelindex.com. Companies wishing to subscribe to the full set of reference prices or apply to submit iron ore or steel price data can do so on the website.
Offer prices for imported scrap in Asia rose by $5-10/tonne over the past week. Offers for bulk shredded scrap are prevailing at $305-310/t cfr China and at $320/t cfr Southeast Asia. The offered price for 80:20 HMS 1&2 scrap is $300-305/t cfr China and $315/t cfr Southeast Asia. The last bookings of around ten cargoes of scrap to China were concluded around two weeks ago at $295/t cfr China for 80:20 and at $300/t cfr for shredded. "Offer prices may have risen because domestic prices are slightly higher," a trader in Shanghai says, adding that there have been no recent import bookings in China. "Higher iron ore prices are behind higher scrap prices in China," a regional trader says. Japanese scrap prices have also firmed, he notes, adding that Southeast Asian importers have no choice but to accept these prices if they want to book material. Containerised scrap prices have also risen by $5/t. Vietnamese trading sources say that bookings of 5,000-7,000 tonnes from USA/Europe were concluded at $287-290/t cfr for 80:20 and at $292-295/t cfr for shredded. Bookings in Taiwan for containerised 80:20 have risen to $285/t cfr, up from $280/t cfr a week ago. "Prices have bottomed out. I think prices will be stable at this level," a trader in Vietnam says. A US exporter said markets began to move up with Tokyo Steel's announced increase. "Things were getting very sour, and now they're starting to pick up," he told Steel Business Briefing.
Iron ore prices surge in China on tight supply
Constrained supply and active buying from Chinese traders saw iron ore prices surge towards the end of last week, with the price of Indian 63.5% Fe iron ore increasing by around $8/tonne over the course of the week. For the first time since mid-August when steel prices in China began to slide, Steel Business Briefing heard of a number of transactions at or in some cases above $100/dry metric tonne cfr to China. Prices had been around $92-95/t cfr on Monday and Tuesday of last week, up from $90-93/t the week before. SBB heard of a deal struck 5 November for one Panamax vessel carrying 75,000 tonnes of 63% Fe fine ore leaving Goa port bound for China, which sold for $82/t fob, with freight currently at around $18/t. A Chinese trader said he knew of one cargo of lower Fe grade selling at close to $102/t cfr China.
Chinese traders have complained of tight supply from India . exacerbated by vessel waiting times of up to 20 days at Haldia and Paradip . and iron ore output in Karnataka state severely reduced because of political disturbances. Furthermore, rising steel output in Japan and Korea is resulting in very little iron ore being put onto the spot market by major producers Rio Tinto, BHP Billiton and Vale. "There is just nobody else to take up the slack," a China-based analyst told SBB. Chinese traders said bullish market sentiment on the back of rising steel prices, and the need for iron ore to be stocked ahead of winter, also contributed to active purchasing last week.
Korean scrap market may rebound in November
Deliveries of domestic scrap to Korean steel mills slowed down last week. Local dealers are anticipating that domestic scrap prices may stay stable in the coming weeks after Hyundai Steel's five consecutive price reductions since mid-September. Moreover, the uptrend in Japanese domestic scrap prices will lift its exports prices to Korea so this will help strengthen Korean domestic scrap prices in November, Steel Business Briefing learns from local scrap dealers. But the high volume of imported scrap inventory at Korean yards may delay any near-term improvement in the current sluggish Korean scrap market. Korea's scrap imports in October reached an all-time high of 883,600 tonnes. "We still need to monitor how Japan's scrap price hike will affect the Korean domestic market," a scrap trader tells SBB. Japan's scrap market leader Tokyo Steel Manufacturing has increased its domestic scrap purchasing prices by ¥1,000/t for all grades at all works effective 6 November. Meanwhile, in late October Korean government's public procurement service (PPS) booked 40,000 t of US scrap as an initial purchase to build up a national scrap stockpile near Dongbu Steel's Asan works at Dangjin south of Seoul. The cargo comprises 10,000 t of shredded, 24,000 t of HMS No.1 and 6,000 t of HMS No.2 and these were booked at $317/t cfr, $312/t and $307/t respectively.
Iron ore prices keep rising during the week: The Steel Index
The latest daily iron ore reference prices released by The Steel Index last Friday show that the price for 62% Fe content iron ore has been moving steadily higher during the week and ended more than 8% above the previous Friday's level. Average weekly freight rates from India were almost unchanged, but rates on the other two key routes to China increased strongly during the week. The reference price for 62% Fe content iron ore fines finished the week at $95.60/dry metric tonne CFR Tianjin port, China. This was a $7.20/dry metric tonne increase from a week earlier. The reference price for 58% Fe content fines also moved generally higher during last week, and ended $7.20/dmt above the previous week's level, a 9% increase. Within the delivered prices, rates for shipments from both the West and East coasts of India were stable. Freight rates from Australia and Brazil to China continually firmed during the week, pushing the weekly average higher, with daily rates increasing around 12% from a week earlier. The Steel Index is majority-owned by Steel Business Briefing and specialises in compiling steel and iron ore reference prices based on actual transaction data. Further details of the methodology and specifications for the two grades of iron ore can be found on the website www.thesteelindex.com. Companies wishing to subscribe to the full set of reference prices or apply to submit iron ore or steel price data can do so on the website.
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