NEW YORK West Coast ferrous scrap bulk export prices dropped between $5 and $10 per tonne this past week in response to continued weak market conditions in Far East Asia.
One week after an exporter sold two bulk cargoes to China at $420 per tonne c.i.f. for an 80/20 mix of No. 1 and No. 2 heavy melt, a second exporter reportedly sold an additional two bulk cargoes this past week to the Asian nation, indicating a slight demand uptick from the worlds largest steel producer, but not a return to earlier highs.
However, the later cargoes, composed of HMS 1&2 (80:20) and shredded scrap, were booked at a composite price of $415 per tonne c.i.f. China, according to sources, indicating that heavy melt tags dropped more than $5 per tonne, given that shred traditionally sells at a premium to heavy melt.
Meanwhile, two South Korean mills came together to book a single bulk cargo at a price basis of $415 for HMS 1&2 (80:20) tonne c.i.f. Korea, sources said.
The cargo left U.S. shores on March 27 and was booked in the prior week, AMM understands. One mill booked 14,000 tonnes of busheling and bonus scrap at prices $15 to $20 per tonne above the heavy melt price, while the second mill booked heavy melt and shred.
Meanwhile, shippers of containerized scrap said the market had been quiet all week, with little demand and prices unchanged after the prior weeks drop to a $370-per-tonne c.f.r. Taiwan price level, with one bid reported at $360 per tonne.