NEW YORK U.S. export
prices for containerized ferrous scrap softened slightly this
past week as mills in India and some Far East Asian countries
continued to battle weak regional markets for finished
Containerized scrap export
prices fell between $5 and $12 per tonne compared with sales
completed around the third week of November, market
A week-long impasse between U.S.
exporters and buyers for Indian mills ended after the Indian
rupee strengthened against the dollar.
U.S. exporters and Indian
importers reported transactions in a range of $415 to $418 per
tonne c.f.r. for containerized shredded scrap delivered to
Mumbais Nhava Sheva port, down from a mid-November range
of $424 to $430, after which U.S. shipments to India halted as
buyers there bid between $400 and $410 per tonne (
amm.com, Nov. 27).
Sources were divided on the
strength of the Indian market, with some saying that trading
resumed at improved price levels just as the mills were looking
to boost inventory.
"The Indian rupee jumped up
against the dollar, which allowed some Indian mills to pick up
scrap since the currency rate and current scrap prices are
encouraging for those (buyers) with liquidity," one source
"The south (of India) is very
weak right now and were still not sure about where prices
are headed," a second source said.
Trading levels for the week were
established after a large exporter broke up a bulk cargo that
arrived on Indias West Coast about 10 to 12 days ago and
sold the vessels shredded scrap cargo to different buyers
at around $417 per tonne, some sources said.
Reports of lower transacted
prices on a second bulk cargo out of South Africa at around the
same time to a southeast Indian port prevented prices from
rising further, they said.
"Very few buyers want to buy
material," a source in India said. "They would still prefer to
book cheaper material from the Middle East and Africa."
On the West Coast, sources
reported containerized scrap sales of an 80/20 mix of No. 1 and
No. 2 heavy melt in a range of $360 to $365 per tonne c.f.r.
Taiwan, the majority of which were trending to the lower end of
that range, down from the previous weeks range of $365 to
$368 per tonne c.f.r. Taiwan (
amm.com, Nov. 29) and a mid-November level of $370
One source said the weakness was
caused by steel mills in large scrap-importing countries like
Taiwan and South Korea struggling to sell finished steel.
"Finished goods are not moving. Mills have lots of inventory,"
Sales to Taiwan were steady this
past week at $360 to $365 per tonne, with that range expected
"as they pushed it down and found the bottom and now seems to
be steady," another West Coast source said.
"(The) market is definitely
looking weak. Container sales are off at $330 per tonne f.a.s.
Los Angeles and going down," a third West Coast source
Only China appears to have
offered some strength to West Coast tags, with one buyer in
China saying that container scrap prices spiked during the
week. "(The) market is going up sharply after two weeks of
being soft. But I am not sure it will be stable during the
winter days," he said.