TEX reported that the ferrous scrap import market in East Asia holds firm, in which CNF prices tend to go up in reaction to freight rates at a high level. Market prices indicate an advance of USD 5 to USD 10 per tonne so far from what they were in late March 2012, which could check a downward atmosphere as to Japan''s ferrous scrap export market for new deals that has enhanced signs of a peak at present.
Behind a firm East Asian market for import ferrous scrap are the repercussions of the world''s crude oil prices on the rise. WTI crude sold at USD 103.31 per billion barrel on the New York Mercantile last weekend for May delivery, a high price range beyond USD 100 per billion barrel that would lead to increased costs of transportation fuels such as bunker oil.
For delivery in South Korea, the latest negotiated prices of No1 HMS from the USA indicate a rebounded level of USD 465 per tonne CNF, up from the previous terms of USD 459 to 460 per tonne CNF. The new price level is reported for purchases by steelmakers such as SeAH Besteel Corporation and Korea Iron & Steel Co for May 2012 delivery.
Besides, prices of containerized ferrous scrap imports into Taiwan further advanced last week to USD 445 to USD 450 per tonne CNF for a mix of 80% No1 HMS/20% No2 HMS. Some electric steelmakers are reported to have shown price ideas of USD 447 to USD 448 per tonne C&F for the HMS mix. There is information, too, on an agreed deal for the HMS mix at USD 450 per tonne CNF.
( Source: Steelguru.com)