It is reported that USA's ferrous scrap export prices for East Asia have signs of a peak, as evidenced by the recent sale of two cargoes from the US West Coast to China at around USD 285 per tonne CNF for the shredded grade. The price level translates into USD 280 per tonne CNF for number 1 HMS, down nearly USD 10 from what was settled earlier.
In East Asia, the deep sea market for number 1 HMS continued to edge up until the second week of May. At the time, offer prices of number 1 HMS topped USD 300 per tonne CNF in part, while a Malaysian import deal was settled at USD 303 per tonne CNF.
Also, a deep sea cargo sold at around USD 290 per tonne CNF China for number 1 HMS in the second week of May. But circumstances have changed since late last week for the deep sea market in East Asia. Having an impact is information that export prices of European ferrous scrap for Turkey have declined by nearly USD 10 per tonne.
For another factor, China's Ministry of Industry & Information Technology has instructed domestic steel companies to restrict what they produce. On their part, China's ferrous scrap dealers have lost no time taking a wait-and-see position on whether to negotiate anew for deep sea cargoes. Besides, they have stopped purchases of ferrous scrap from Japan.
Meanwhile, ferrous scrap buyers in East Asia such as South Korean steelmakers enjoy something of a tailwind in what they take. Among main factors are changing situations in China and Turkey, the world's two major ferrous scrap importing countries, and the outlook that Russia will ease its ferrous scrap export restrictions in June.