US ferrous scrap offer prices to East Asia rise on higher steel prices

Singapore (Platts)--26Jul2013/933 am EDT/1333 GMT Suppliers of US ferrous scrap raised their offer prices to East Asia during the week ended Friday due to rising iron ore and Chinese steel prices, trading sources said. New offer prices to China have risen this week to $370-375/mt CFR 80/20 basis, Chinese trading sources said. Last week, four bulk cargoes of US scrap concluded at $365/mt CFR China heavy melting scrap I/II 80/20 scrap basis and one bulk cargo at $365/mt CFR Korea HMS I basis. "Scrap prices are firming. Chinese steel prices are up and spot iron ore prices are firm too," an analyst said. A Chinese trader was widely heard in the market to be in negotiations to book bulk scrap from US and this reflected more bullish buying sentiment, he added. In Taiwan's containerized scrap market, a leading US supplier sold 80/20 in container at $350/mt CFR, up from $346-348/mt CFR a week earlier. The volume booked was estimated at less than 10,000 mt. However, some Taiwanese mills were also bidding lower at $345-348/mt CFR during the week because domestic rebar prices were still sluggish in Taiwan, local trading sources said. A Taiwanese mill booked 6,000 mt of Japanese composite H1 and H2 grade scrap at around $350/mt CFR Kaohsiung H2 scrap basis. Last week, the same mill had booked H2 grade scrap at $344/mt CFR. Scrap offers from Japan have dwindled. The few offers being made are prevailing at $355/mt CFR Taiwan for H2 grade scrap. "These offers are not workable for buyers here," a Taiwanese trader said. Offer prices for Japanese H2 grade scrap in Vietnam have similarly risen. Offers are up by $5-10 week-on-week to $365-370/mt CFR. Local trading sources said that there are no takers at this price. Containerized 80/20 scrap from Central and South America, and West Africa were heard recently concluded at $340-345/mt CFR Vietnam, traders in Vietnam said.