NEW YORK Ferrous scrap
export prices on the West Coast are under pressure this week
after several market participants reported a softening in
offshore sales to some regions.
Most sources said containerized
scrap prices for an 80/20 mix of No. 1 and No. 2 heavy melt to
Taiwan dropped this week due to limited participation from
buyers. HMS 1&2 (80:20) sales were reported in a range of
$365 to $368 per tonne c.f.r. Taiwan, down from sales concluded
at between $370 and $380 per tonnemainly at the low
endover the past two weeks.
"Containers have backed off $5
to $7 this week, with some consumers out of the market in a
wait-and-see mode," said one exporter, who is considering
dropping buying prices at his yards. "In response to that
decrease, we will be dropping all of our port buying prices by
$10 per gross ton effective Thursday and Friday."
A second source suggested
further weakness is imminent. "I am hearing just this morning
that (HMS 1&2) 80/20 delivered to Taiwan is down from $380
to $368 per tonne. I feel that the market will continue to head
down," he said Thursday. "I would not be surprised if it is a
$350 market by next week."
A third source who reported a
similar price range said weak demand for finished products
could result in further price weakness.
However, a healthy Indonesian
market could offer some support to exporters able to ship
shred, a fourth source said. "Container sales to Taiwan seem to
be sliding. Right now, heavy melt sales into Taiwan are around
$365 per tonne. Container sales for shred into Indonesia,
however, have been strong at $405 to $410 per tonne," he
Sources said sustained weakness
in containerized export tags also could put some pressure on
bulk cargo sales.
The most recent confirmed bulk
sale out of the West Coast was concluded about 10 days ago at
$402 and $407 per tonne c.f.r. Taiwan for HMS 1&2 (80:20)
and shred, respectively.
Bids from China and South Korea
for bulk scrap are between $388 and $390 per tonne for heavy
melt, sources said, but exporters refused to accept those price
Only one source who spoke to
AMM said seller offers for container scrap to Taiwan
jumped higher this week, to $385 per tonne for heavy melt.
"However, (there have been) no buyers yet," he said.
A buyer for a Taiwanese mill said this weeks weak market
would be short lived because mills in Taiwan are short on
scrap. Scrapyards in Taiwan paid above $365 per tonne in
anticipation of a rising market, he said, and this weeks
weakness is likely because scrapyards stopped bidding on