NEW YORK West
Coast export prices for containerized ferrous scrap continued
their upward momentum through July, with prices gaining an
additional $10 per tonne over the past two weeks.
continue to drive demand and support higher prices, and U.S.
exportersbuoyed by a surge in bulk demand and stronger
domestic pricescontinue to aim higher.
Most exporters said
their latest containerized scrap transactions concluded at $350
per tonne c.f.r. Taiwan for an 80/20 mix of No. 1 and No. 2
heavy melt scrap, with this weeks offers climbing as high
as $355 per tonneup about $10 per tonne from mid-July and
$20 since mid-June.
containerized exports outpaced the $10-per-tonne increase in
bulk prices in July, narrowing the price differential. "The
container market has edged back up and is again getting
competitive with bulk. The spread continues to shrink between
container and bulk," one exporter said. "Container heavy melt
sold at $350 last week and is continuing to edge higher."
said they expect container prices to hold this week at around
$350 per tonne, despite higher offers.
"This week will
probably hold steady as the rebar market appears to be inching
back a few dollars in Asia," the exporter said. "Rebar demand
ebbs and flows in Asia, but all need scrap to make bar. Prices
needed to come up in Asia to keep the scrap flowing, as U.S.
domestic pricing had eclipsed export prices."
A second exporter said
prices to Taiwan were rising because its mills need to
replenish inventories in time for higher production runs in
September, when seasonal energy restrictions come to an
A third source said
improved finished goods sales in Taiwan are contributing to the
increase in scrap demand and prices, while a fourth source said
a stronger Japanese yen also has been influential in higher
Mills in South Korea
and China focused most of their attention in the past few
months on scrap from Japan as the yen was more favorable vs.
the dollar. However, the gradual strengthening of the yen is
likely to bring those large consumers back to the U.S. for bulk
orders, which could lift overall export prices, a fifth source
A buyer for a South
Korean producer said he had received U.S. offers at $350 per
tonne c.f.r. Korea but showed little interest. "We are still
concentrating on low-price Japanese scrap," he said.