(HSV VIETNAM GROUP) – Approaching the November trading session, the long-awaited recovery in exports is finally expected to support domestic market prices next month.
Until last week, the bearish trend in export markets had undermined the expectations of market participants with a positive outlook for November trading. However, a recovery in demand in India as well as Turkey, the largest export market, and a recovery in export prices are now likely to support a sideways upward trend, depending on the type of scrap.
An American supplier said: "Currently, we have a more positive outlook after the increase in hot-rolled coil prices at mills and the UAW's expected agreement with Ford. I expect prices to increase by 20-40 USD/ton depending on grade."
Another supplier pointed to weakening scrap imports, saying: "Flows are unlikely to improve amid the approaching winter and holiday season. This, coupled with improving fundamentals, should support prices in November trading."
Although prices recovered in Türkiye last week, the price of containerized HMS 1&2 80:20 scrap originating from the US exported to Taiwan has yet to recover. On Monday, prices fell to $350/tonne cfr Taiwan, although this has not yet boosted demand.
On the East Coast, scrap prices rebounded in Türkiye last week after a slight recovery in demand. HMS 1&2 80:20 originating from the US, decreased to 355 USD/ton cfr last week, increased to 356.75-358 USD/ton cfr Türkiye last week. Suppliers are currently targeting higher prices above 360 USD/ton cfr. However, the market doubts Turkish mills will pay these values as there is still no support from steel sales.
Ha Diem HSV