SMP
EU powder well positioned for exports
Europe
EU exports prosper over supply tightness in the US and Oceania
The EU SMP market prices continue to bounce up and down on the volatility in the euro / dollar exchange rate, the uncertainties regarding freight disruption and the rising energy prices. The tightness in the US and Oceania supply makes EU powder nevertheless the product of choice for quite a few importers. It is this strength in import demand that sustains the current price levels of EUR 2550-2650 ex works even though EU SMP production facilities are running at full capacity.
Americas
NFDM price rises by almost 20% this past month
Relatively low production of NFDM/SMP continues to push the local price levels upward. There is surprisingly strong demand both within the US and from Mexico and it feels like buyers have decided to bite the bullet to increase their forward coverage. At the current level of about USD 1.95/lb (4300/t) ex works prices appear to stabilize. However, suppliers that have the opportunity to sell within the next two weeks can easily earn USD 2.02-2.05/lb. The futures market is backwardated, with Q3 levels around USD 1.55/lb. We repeat our statement that the sell side does still not concur with the looser outlook and largely refrains from offering at these forward delivery dates.
Asia-Pacific
Tight supply and subdued demand lead to modest price appreciation
The turbulence of the conflict in the Middle East continues to affect the APAC market. There is some demand from Asia but it feels a little soft, and the Middle East is struggling with all the freight constraints. The market prices for Oceania origin have risen to about USD 3600 FOB with the notion that it may take until June before the supply situation improves. EU powder is becoming an interesting product for those buyers that can handle this origin.
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