NEW YORK U.S. West Coast ferrous scrap export prices received a modest boost after one exporter completed a bulk sale to Southeast Asia this week.
Market sources said a mixed cargo of heavy melt and shredded scrap was sold to Vietnam at prices about $10 per tonne higher than previous sales.
The cargo was said to be mostly an 80/20 mix of No. 1 and No. 2 heavy melt that sold for $423 per tonne c.f.r. Vietnam, with a small volume of shredded sold at $428 per tonne c.f.r.
Although the sale appeared to be significantly higher in terms of delivered price compared with previous transactions of $407 per tonne c.f.r. for No. 1 heavy melt sold to South Korea, the freight to Vietnam was much higher. Sources said the sale to Vietnam represented a price level of about $380 per tonne for HMS 1&2 (80:20), about $10 higher than previous export sales.
The sale was the first confirmed bulk sale off the West Coast in more than a week and came shortly after export docks raised buying prices by $10 per tonne to compete with a burgeoning domestic market (amm.com, Aug. 1).
At that time, a source said the price increases had little to do with positive market sentiment.
"Export brokers have been pushing the heavy melt price here in attempts to lock in tonnage, and the slow inflow of scrap has initiated price increases at competitor yards," he said. "Raising prices in these markets is not as much a sign of optimism in future pricing as it is a competitive response to reduced intakes."
AMMs West Coast Ferrous Scrap Export Index was unchanged Monday at $369.13 per tonne f.o.b. Los Angeles for HMS 1&2 (80:20) due to the lack of activity last week (amm.com, Aug. 13).
AMM reported market rumors of a bulk sale at about $10 per tonne higher into South Korea, but sources later reported the sale to Vietnam with no confirmation of any trade with Korea.
South Korean consumers remain focused on securing cheaper scrap from Japan and Russia this week, one source said.