Wednesday, February 9, 2011

US ferrous heavy melting scrap for export drops $30/lt

 
New York (Platts)--8Feb2011/552 pm EST/2252 GMT

The Platts price assessment for heavy melting scrap exported from the US fell $30/lt Tuesday to a new midpoint of $405/lt delivered to East Coast export docks, reflecting softer export demand and mirroring a $30/lt drop in export prices for US shredded ferrous scrap.

A Northeast scrap dealer told Platts that bids at the docks for heavy melt are now $400-410/lt delivered. "Export got whacked more than domestic," he said, referring to the larger decline in scrap export prices compared to the $20/lt drop in domestic prices recorded last week when the Platts price assessment for shredded scrap dropped to a new midpoint of $455/lt delivered to Midwest mills.

Domestically, the Northeast dealer sold heavy melt for about $410/lt delivered mill gate, netting him a higher FOB yard price for his tons and explaining why so little scrap has gone to the docks -- dealers can do better by selling domestically. "All my February sales were domestic," he said, after having sold some export tonnage in January when prices were at their peak. Cut plate and structural scrap, he said, sold for about $440/lt delivered mill gate.

A Midwest scrap dealer cited February ferrous prices in line with those of others. He sold shredded at $455/lt delivered Midwest mill, while heavy melt, the weakest grade in February due to receding export demand, sold domestically for $410-415/lt delivered mill gate. Cut plate and structural scrap, in shorter supply due to an overall lack of demolition activity, sold at $440-450/lt delivered.

Attending the Institute of Recycling Industry's Gulf Coast Chapter meeting in St. Louis, he described the overall tone as positive. "The mood here in St Louis is OK--there is no overall pessimism," he said. For the most part, save a few overly dramatic tales of woe, people are happy, he said, as scrap dealers are seeing profits from recent robust prices while steelmakers are also mostly content, having been able to push through recent price increases.

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