The US ferrous scrap import market was quiet in East Asia during the week, regional traders said Thursday. Importing mills were staying away because they believed US scrap prices were likely to soften after iron ore broke the $100/dry mt support level last Friday.
Mills were generally unwilling to give bids for US bulk scrap because they faced weak steel demand and were bearish.
"Mills will hold off buying because the Islamic fasting month is approaching and they think that scrap prices could come down," a Malaysian mill manager said. Also Chinese finished steel prices are falling, he said
Current bulk scrap offers are for July shipments.
Two weeks ago, a Malaysian mill was heard to have purchased a 40,000 mt US-origin cargo of shredded and 80:20 for June shipment at $378/mt CFR 80:20 basis.
Last week, an offer of US bulk scrap was made at $377/mt CFR Vietnam 80:20 basis but Vietnamese trading sources said that the Vietnamese mill booked Japanese scrap instead of that US cargo offer.
They heard that the Vietnamese mill purchased 35,000-40,000 mt of Japanese H1 and H2 grades (50:50) composite scrap at around $373/mt CFR.
New offers for H2 grade scrap to Vietnam have risen this week to $370/mt CFR Vietnam compared to bookings at $365/mt CFR Vietnam last week. Japanese scrap bookings last week were substantial and amounted to some 70,000-80,000 mt, a regional trader said.
In Korea, a local mill recently purchased about 7,000 mt of Japanese scrap H1 and H2 (50:50) for June shipment at JPY 35,400/mt ($348/mt) CFR Busan.
Korea's Hyundai Steel recently booked 15,000 mt and 70,000 mt of Russian A3 grade scrap at $360/mt and $361/mt cfr respectively for June/July arrival.
Bulk offers for US scrap were heard late last week at $375/mt CFR Korea HMS 1 basis. Unless the Asian steel market rebounds, US scrap suppliers' target prices were "far away" from Korean mills' target buying prices, a Korean mill manager said. Korean mills could consider US bulk scrap at $370/mt CFR or below, he said.
