Export US ferrous shredded scrap down $5/lt on softer demand
New York (Platts)–16Feb2011/538 pm EST/2238 GMT
The Platts price assessment Wednesday for shredded scrap exported from the US slipped another $5/lt to a new midpoint of $430/lt delivered to East Coast export docks as softer overseas demand coupled with stronger US domestic prices keep tons onshore.
A Southeast scrap processor with both domestic and export customers said he was fielding dockside bids of $425/lt delivered for shredded material, still not high enough to pry tonnage away from the domestic market. That’s where most dealers sold at $455/lt delivered mill gate in February, though that figure may erode further in March after dropping $20/lt from January’s $475/lt delivered.
Indeed, the Southeast dealer said early indications suggest March domestic US ferrous scrap market could be softer. “Look for March to be sideways to down $5/lt,” he said.
A mid-Atlantic scrap dealer also said he has not been doing any export business due to the relative strength of the domestic US market.
“Nothing new from the docks as we have shipped very little export,” lately, he said.
The source said he, too, sold shredded material domestically at $455/lt delivered mill and had similar prices for heavy melting scrap and cut plate and structural — about $410/lt and $440/lt delivered, respectively — as the Southeast scrap dealer.
The mid-Atlantic scrap dealer was also on the same page as the Southeast dealer for March, seeing a softer US market. ?Hearing March should be soft sideways, maybe down $10/t, but it’s still early,” he said.
A Midwest scrap buyer also saw similar pricing as the previous sources, showing how homogenous ferrous scrap pricing remained across regions during February. Domestic shredded sold at $455/lt delivered, he said, with HMS and plate/structural again at about $410/lt and $440/lt delivered, respectively.
His forecast for softer March ferrous scrap pricing was somewhat more detailed, breaking out grades.
“I believe sentiment will be more bearish for secondary grades in March as weather breaks and [inbound] flows improve,” he said. “Prime scrap demand, however, appears to be steady and I’m anticipating a sideways move for busheling and bundles in March.”