US Ferrous Scrap Export Offer Hits $ 400, 17 Months High

US ferrous scrap export offer increased to more than US$ 400 per tonne for No.1 heavy for the first time in 17 months. US composite price became US$ 311.50 in the first week of March, which was the highest level since 2009, when US steel makers increase the operation rate and Turkish steel makers restarted the scrap purchase.

US ferrous scrap export offer is around CFR US$ 410 or 36,400 yen per tonne to East Asia. The transaction price is CFR US$ 390-395 per tonne, which is US$ 10-15 higher than the level before Chinese New Year. Ferrous scrap price has been increasing in Japan and South Korea during Chinese New Year and the price is increasing in Europe due to the purchase by Turkey.

Japanese export offer to South Korea and other countries in Asia significantly increased. However, the importers in China stop the purchase due to the higher price. The importers in South Korea are reluctant to buy high priced Japanese scrap, according to Japanese trade firm source.