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|New Export Mkt After Lunar New Yr Holidays Draws Attention of The Mkt|
|= Although there are bullish factors sporadically, mkt for S.Korea would be bearish sentiment =|
The trend of overseas buyers after Lunar New Year Holidays draws an attention of the ferrous scrap market this week after the 3 straight holidays including National Founding Day or the week starting from February 11. Kanto Tetsugen Cooperative Association plans to hold a tender tomorrow or February 13. It is expected that new trend of the new export market would be likely to appear before and after the tender.|
In response to the price increase of contract price of Western ferrous scrap for Turkey, East Asian market entered long holidays for Lunar New Year, gradually intensifying the rebound sentiment. Concerning deepsea bulk cargo market for South Korea, it was reported that some electric steelmaker in South Korea concluded Australian bulk cargo at US$ 310 CFR on the 80/20 HMS mix after U.S. deepsea bulk cargo for South Korea had temporarily declined to the low price at US$ 302/ton CFR on No.1 HMS basis last month. The quantity of that Australian bulk cargo was 28,000 tons. Composition was as follows: 10,000 tons for PS, 2,000 tons for shredded grade, 16,000 tons for o.1 HMS/ No.2 HMS. It is expected that it would be delivered from the end of March to the beginning of April.
Some East Asian market already bottom out. Some shippers paid attention to the degree of impact to Japanese ferrous scrap by that trend in East Asian market. There are some bullish factors sporadically in the external environment surrounding Japanese ferrous scrap market, such as the rebound of the domestic market in the U.S., and the drastic increase of iron ore spot price. The foreign exchange rate as of the afternoon of February 8 was US$ 1= Y 109.7 level. The gradual Yen's depreciation to US dollars, which had temporarily marked US$ 1= Y 110 level on February 7, would be likely to be also favorable wind for the new export deals of Japanese ferrous scrap.
On the other hand, there is a high possibility that the export market for South Korea would be obliged be sluggish, especially for Hyundai Steel. While Hyundai Steel held more than 450,000 tons of remaining export contract balance of Japanese ferrous scrap, which was equivalent to more than double months of normal inventory level, the company announced its intention to suspend fleeting after February 20. Many suppliers expected that Hyundai Steel would not purchase Japanese ferrous scrap actively for a while. The bullish and bearish sentiment mixed in the new export market recently.
|last modified : Tue 19 Feb, 2019 [11:18]|