The East Asian market for imported bulk ferrous heavy melting scrap (HMS) picked up during the week after a lull in the market and sparse trading activity since October 2015.
Importing mills in the region have finally accepted the higher asking prices sought by US scrap suppliers.
A Thai mill was heard to have secured two bulk cargoes from two US suppliers earlier this week at $190/mt CFR for HMS 1/2 80:20 scrap and at $195/mt CFR for shredded scrap, Thai and regional trading sources said. The cargoes are due for February shipment.
Another US supplier was offering shredded scrap to the Thai mill at $200/mt CFR, a Thai trader said Thursday.
A leading Korean mill was also heard to be in the process of purchasing bulk scrap from a US supplier this week.
Some traders outside Korea, including Japanese traders, reported hearing the mill had just secured one deep sea cargo at $188/mt CFR HMS I basis for February shipment.
A Taipei trader heard that the mill had secured the cargo at $188/mt CFR after bidding down the original offer of $190/mt CFR.
The price of $188/mt CFR "makes sense and is the right level" based on the prevailing bulk HMS price of $193/mt CFR to Vietnam, said a trader in Vietnam who was not yet able to confirm the Korean deal. The "maximum" price for HMS to Thailand was $190/mt CFR, he added.
But Korean trading sources said Thursday they only heard the Korean mill was still in negotiations to secure material.
A Seoul-based trader said he thought the mill was considering booking bulk HMS I scrap at $185~$190/mt CFR but this was not settled by the mill's procurement department.
"Currently, USA offer prices (for HMS I are) in the range of $185-$195. Maybe tomorrow or the day after tomorrow, the fixed price will be out," he said Thursday.
Platts assessed its weekly East Asian bulk HMS 80:20 price last Friday, January 8, at $170-$175/mt CFR, with an implied midpoint of $172.50.
