NEW YORK Export prices
for containerized ferrous scrap on the West Coast have followed
weaker bulk sales, dropping as much as $10 per tonne this week
vs. last week.
Weaker demand from Taiwan and a
large buildup in inventory by a major bulk exporter has led to
the weakness, market participants said.
One day after AMM
confirmed a Chinese consumer had booked two bulk cargoes at
prices that were down $10 per tonne to $460 per tonne c.f.r.
for an 80/20 mix of No. 1 and No. 2 heavy melting scrap
(AMM, April 12), exporters of containerized scrap said
their market had taken a similar hit.
Several sources said containers
of No. 1 heavy melting scrap to Taiwan fell to $440 to $445 per
tonne c.f.r. this week, with some mills adopting a
"The market on West Coast
containers is on a downwards trend. It is likely down between
$8 and $10 per tonne from last weeks pricing," one
Other exporters who confirmed
the trend said imminent weakness in Taiwanese demand has
allowed some mills to take a back seat this week.
"West Coast prices dropped. With
Taiwan expected to lower its intake by summer, they are in no
hurry to book volumes, especially if prices are weakening," a
third source said.
"Going forward, a pending
electricity hike and slack demand for summer months will likely
cause Taiwans mills (to) operate two shifts instead of
three during their summer months, and some are contemplating
only one shift," a Taiwanese market participant said, adding
that at least two mills in Central Taiwan have scheduled
upgrades and maintenance, which is likely to cause two- to
Also contributing to the pricing
pullback is the fact that a major bulk exporter has an
oversupply of material in California, sources said, noting that
the inventory-heavy exporter has offered about five bulk
cargoes at depressed prices this week, which in turn has put
pressure on containerized tags.
"They have not been able to sell
any shiploads to Asia and that is why they are full of scrap,"
another source said.
This weeks drop in
containerized scrap prices more than negates last weeks
bump, when West Coast container prices averaged $450 per tonne
c.f.r. for No. 1 heavy melting scrap to Taiwan, up about $5 per
tonne based on steady demand (AMM, April 10).