New York (Platts)--7Feb2011/522 pm EST/2222 GMT
The Platts price assessment for US shredded ferrous scrap export fell $30/lt Monday to a new midpoint of $435/lt, reflecting waning overseas demand and paralleling a $20/lt drop in the price of February domestic shredded.
One Southeast scrap dealer said that although he had bids from buyers in India for shredded at $420/lt FAS port of Savannah, Georgia, he would need at least $440/lt FAS to do as well as his domestic shredded sales, which were concluded at $455/lt delivered to local mills.
Sales into Asia at about $500/lt CFR for shredded net to about $430/lt FAS, he said, after deducting $60/lt in freight and another $10/lt in handling charges, still insufficient to draw tons away from domestic buyers.
So far, the Southeast scrap dealer said all his shredded sales have been domestic and he has completed more than 80% of his February sales. If prices stay at current levels, he does not anticipate sending any tonnage offshore. With some local mills out of the market due to ample scrap inventories or production outages, he may sell fewer tons than in January, he said.
The Southeast dealer thinks prices could move downward in March. "It may give back again in March," he said, with a stable supply side in the Southeast and less export demand to absorb tonnage not taken by domestic mills.
Inbound scrap flows in the Northeast have been more affected by harsh winter weather conditions than yards in the South, where the Southeast dealer said things were not as bad.
Meanwhile, the Platts assessment for domestic shredded was unchanged at $455/lt delivered Monday, trading in a range of $450-460/lt delivered to Midwest mills.
An Ohio Valley scrap dealer said he sold his domestic February shredded scrap at $455/lt delivered mill gate in the Pittsburgh/Cleveland area, reinforcing what appears to be remarkably uniform pricing across regions in the eastern US.
Heavy melting scrap No. 1 sold at $415/lt delivered, said the Ohio Valley scrap dealer, and cut plate and structural went for $440/lt delivered.
Plate/structural scrap is in tighter supply lately because it is largely a product of building demolition activity, which has been slow in the US due to the depressed construction and real estate markets.
One Southeast scrap dealer said that although he had bids from buyers in India for shredded at $420/lt FAS port of Savannah, Georgia, he would need at least $440/lt FAS to do as well as his domestic shredded sales, which were concluded at $455/lt delivered to local mills.
Sales into Asia at about $500/lt CFR for shredded net to about $430/lt FAS, he said, after deducting $60/lt in freight and another $10/lt in handling charges, still insufficient to draw tons away from domestic buyers.
So far, the Southeast scrap dealer said all his shredded sales have been domestic and he has completed more than 80% of his February sales. If prices stay at current levels, he does not anticipate sending any tonnage offshore. With some local mills out of the market due to ample scrap inventories or production outages, he may sell fewer tons than in January, he said.
The Southeast dealer thinks prices could move downward in March. "It may give back again in March," he said, with a stable supply side in the Southeast and less export demand to absorb tonnage not taken by domestic mills.
Inbound scrap flows in the Northeast have been more affected by harsh winter weather conditions than yards in the South, where the Southeast dealer said things were not as bad.
Meanwhile, the Platts assessment for domestic shredded was unchanged at $455/lt delivered Monday, trading in a range of $450-460/lt delivered to Midwest mills.
An Ohio Valley scrap dealer said he sold his domestic February shredded scrap at $455/lt delivered mill gate in the Pittsburgh/Cleveland area, reinforcing what appears to be remarkably uniform pricing across regions in the eastern US.
Heavy melting scrap No. 1 sold at $415/lt delivered, said the Ohio Valley scrap dealer, and cut plate and structural went for $440/lt delivered.
Plate/structural scrap is in tighter supply lately because it is largely a product of building demolition activity, which has been slow in the US due to the depressed construction and real estate markets.
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