"There was some talk of product moving to Europe, but with Asia where it is now, that's where people should be going," a US producer said.
Last week, with no arbitrage opportunities open, there was some talk of US traders lifting material at the end of October and shipping it to Europe to mitigate losses. But a recent jump in Asian prices makes shipping to South Korea more attractive, according to sources.
On Monday, the Asian price climbed to near $1,290/mt. With freight rates estimated near $75/mt, the US price would have to be near 55 cents/lb to profitably export.
The European price on Monday was near $1,260/mt -- which would require a US price closer to 54.50 cents/lb to profitably export.
Sources last week said buyers who paid between 52 and 53 cents/lb for end-October/early-November lifting would likely try to export the material to try to capture a small profit or mitigate losses.
New trades for export were unlikely, sources said, as variable costs in the US were near 54.85 cents/lb on Monday. Sources said that would put the offers for US material closer to 58 cents/lb.
