Raw Material Prices
Hoffman on scrap: Could a floor in Asia firm US prices in April?
Written by Phil Hoffman
March 28, 2024
Numerous mid-sized export yards in California and in Baja Mexico had little to no inventory on the ground last week because most had sold forward in the falling March market.
Looking to secure their margins, they dropped prices across the scale. That resulted in lower-than-normal flows. “I’m sold out through mid-April and even longer if the flow doesn’t pick up” one yard owner said. That turned out to be the position of numerous West Coast suppliers.
Meanwhile, Asian buyers attempted to drop to prices to $335/mt FAS ($350/mt CFR Taiwan) for container scrap. But by the time buyers made the $335/mt offers, most suppliers had taken orders at above $340/mt on the way down. One supplier who held out with his inventory achieved a $5/mt increase to $345/mt FAS ($360/mt CFR) Taiwan on March 26.
Meanwhile, Japanese scrap exporters/suppliers balked at the latest Vietnamese buyers’ offers. Buyers in Vietnam pushed to go below $370/mt CFR Vietnam for short-sea shipments of Japanese H2 scrap. “Suppliers are not going to accept anything less than $370,” an executive at one major trading company said.
The takeaway: It seems that the West Coast scrap export market and Asia-Pacific region are at a bottom given low flows, US West Coast suppliers short on inventory to ship existing orders, and Japanese suppliers holding firm.
Developments in Asia, combined with the latest Turkish sales in the $380s/mt, indicate that the international ferrous scrap market may be stabilizing. That will likely put pressure on the US domestic market to remain flat or to increase in some areas in April.
Phil Hoffman
Read more from Phil HoffmanLatest in Raw Material Prices
CRU: Renewed availability of Russian pig iron weighs on global prices
Pig iron prices declined in all regions as the EU’s 2025 import quota on Russian pig iron has begun, loosening global supply.
CRU: Iron ore down due to falling hot metal production in China
A bleak outlook for steel demand has undermined market confidence, contributing to the drop in prices.
Pig iron import tags continue to slide
Prices for pig iron imports into the US continue to retreat in the face of regional weakness in demand for ferrous raw materials in South Asia and the Far East.
Pig iron tags slip on soft ferrous raw materials demand
The prices being paid by US-based buyers has continued to decline as ferrous raw material demand across the globe remains weak.
Nucor adjusts coating extras
On Monday, Nucor published new extras effective Jan, 4, 2025.