US Ferrous scrap export prices rise on tight supply

By Paul Ploumis (ScrapMonster Author)

April 05, 2016 07:52:34 AM

SPOKANE (Scrap Monster): The US Ferrous scrap export prices managed to hold on to the levels witnessed during a week before. The week reported fewer international bulk cargo deals when compared with the previous weeks. Dock buying prices by ferrous scrap exporters witnessed marginal rise during the week.

US East Coast reported only one bulk sale during the week. The export prices remained more or less flat with marginal rise of 50 cents per tonne when matched with the sales reported a week ago. The Turkish producer bought 25,000 tonnes of an 80:20 mix of No1 and No2 heavy melting scrap at $229.50 per tonne cfr, 10,000 tonnes of shredded scrap at $234.50 per tonne cfr and 5,000 tonnes of bonus grade scrap at $239.50 per tonne cfr.

The marginal upward movement in scrap export price is attributed to the jump in iron ore and billet prices, traders noted. The export price in the East Coast region had spiked up during early-March this year. The shortage of scrap in market has provided support to scrap export prices, sources said.

Meantime, containerized scrap and export yard buying prices have kept pace with the increase in those for bulk exports. Domestic consumers, who have been absent from the market for a long time due to lack of new orders, have now started showing buying interest, market sources indicated.

The demand for shredded scrap remained strong in the East Coast market, as exporters were seen turning down offers from international buyers. The export yards announced marginal hike in buy price for No 1 heavy melt scrap during the week. Meantime, Western Pennsylvania mill demand remained soft with mills reporting reduced scrap buying activity.

The AMM’s East Coast ferrous scrap export index for heavy melt was up marginally from $216 per tonne to $216.50 per tonne FOB New York. The index for shredded scrap was also up 50 cents to $221.50 per tonne. AMM’s West Coast ferrous scrap export index for heavy melt remained unchanged at $163 per tonne FOB Los Angeles.