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Ferrous Export Market In A Stand Still!

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by - 5/25/2016 11624 Views

Inconsistent Pricing, A Thorn In The Flesh.

All eyes are fixed on the ferrous scrap export market, with the market players fully aware that the next sale will determine where prices are heading for the near term. The latest news is that, the U.S. ferrous scrap export market is at a standstill as Turkish and Taiwanese buyers continue to scrutinize Chinese billet price fluctuations before making their next move in the market.

It is also to be noted that no cargo deals were reported from either the East or West Coast, and it has been two weeks since Turkey bought anything from the former after the prices shot up by $17.50 per tonne. In fact, Turkey has been conspicuously absent from all global scrap markets, failing to strike any deep- or short-sea deals for a second consecutive week.

Reliable sources said Chinese billet offers have flooded the market at inconsistent prices, causing Turkish buyers to take a cautious stance and wait out the price fluctuations. Meanwhile, the Chinese generated some confusion in the market, first lowering billet prices to Turkey before having second thoughts and raising tags, only to lower them again.

Chinese billet stood at 2,060 yuan ($315) per tonne ex-works on May 18th, it is up by 7.3 percent from 1,920 yuan ($294)per tonne from May 16th. Sources indicate that billet offers into Turkey declined to $325 per tonne c.f.r on May 16, but have since returned to the $360-per-tonne level seen last week. “This is nothing unexpected,” a West Coast exporter source said of Chinese billets serving as a catalyst to lower scrap export prices. “China accomplished what they wanted to do” driving prices lower in order to sell their product. Some exporter sources estimate that Turkey needs to import at least 500,000 tonnes of scrap for June shipment, depending on capacity utilization and its reinforcing bar order book, which is currently said to be dead. Below is given the export price of shredded scrap from U.S.A to India.

Turkish mills are trying to slow down ferrous scrap buying terms because of concerns that they won't be able capture increases in raw material costs on the finished side of business. “With the Turks not knowing what they’ll get next for rebars and the market demand, they don’t know what to do about raw material imports right now,” the East Coast exporter source said. Meanwhile, prices for an 80/20 mix of containerized No. 1 and No. 2 heavy melting scrap continue to drift lower. Sources confirmed that container deals took place at $210 per tonne delivered to Taiwan May 17th, with prices expected to be stable for the week.

“What goes up quickly comes down twice as fast,” a second West Coast exporter source said of the steep decline in 80/20 containerized heavy melt prices. “On the last round up, it took six weeks for Taiwan container prices to move up $100 (per tonne).” The quick downturn in container export prices has triggered declines in export yard buying prices on the West Coast, with docks seeing drops of as much as $30 per gross ton for No. 1 heavy melt delivered over the past seven days. West Coast market participants indicated that the ferrous scrap export buying price range is currently $100 to $150 per ton.

“Legitimately, the market as a whole is around $130 per ton,” a third West Coast exporter source said. “The market is in a severe correction here in the Southwest and prices are all over the board as dealers adjust to the rapid changes.” Some market participants told that dock buying prices fell as much as $50 per ton for No. 1 heavy melt delivered over the past two weeks. However, sources indicated that no further price drops are anticipated over the next week.

Category : Metal

Tags : Ferrous Scrap export, Ferrous Scrap. Ferrous Scrap Market, Ferrous Scrap market Trend, Shredded Scrap, Shredded Scrap Price

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About Georgy Abraham

As the bright morning of 28th May dawned in the year 1972, in the fulfillment of time according to the plan & will of Almighty Godbrought me forth into this world and I was brought up & educated in Orissa. My parents provided me with the best of education in an English medium school with high standa .... more info


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