NEW YORK Ferrous scrap
export prices on the West Coast have dropped $10 per tonne this
week after two bulk cargoes were sold to China on Monday at a
discount to the previous weeks range.
A large Chinese consumer
confirmed reports by a number of West Coast exporters that two
30,000-tonne cargoes sold at $465 per tonne c.f.r. for shredded
steel scrap and $460 per tonne c.f.r. for an 80/20 mix of No. 1
and No. 2 heavy melting scrap. The sale was $10 per tonne lower
than last weeks bulk shipment of shredded scrap to
Taiwan, which reportedly sold at $475 per tonne (AMM,
Market participants said the
sale has triggered a wave of offers from other West Coast bulk
exporters, but no further transactions were confirmed.
"Two bulk cargoes sold down $10
to China at $465 per tonne c.f.r. for shred and $460 per tonne
c.f.r. for 80/20 heavy melt," said one exporter. "Five more
bulk cargoes are now being offered off the West Coast at the
The sale marks the Chinese
consumers first purchase in the U.S. scrap market since
February, a source at the company said. That month, the
consumer picked up several U.S. cargoes at a high price of $470
per tonne c.f.r. for 80/20 heavy melt.
A second exporter, who had heard
talk of the sale, said he wouldnt be surprised to see
other exporters jump on board the new price level.
"When somebody breaks the
market, everybody chases it. So the other exporters will have
to trade at that level," he said.
But another source in China said
other steel mill and traders are largely expected to stay on
the sidelines until prices fall to the more attractive
Meanwhile, a source at a South
Korean consumer said he had received several offers from three
West Coast bulk exporters in recent days.
"Two exporters offered prices
higher than a third exporter. The offer levels are between $465
and $470 per tonne for shred," he said.
At the same time, the consumer
said the market expects bulk freight to China, South Korea and
Taiwan to drop $2, to $33 per tonne, later this week or early
"Bulk freights have been at $35
per tonne for a long while. This week Im hearing they
could drop to $33 per tonne, so that will give the exporters
some relief in this weakening market," he said.