ferrous scrap prices

The Platts price assessment for shredded ferrous scrap exported in containers fell $7.50/lt Tuesday to a new midpoint of $455/lt FAS East Coast ports, bringing it more into line with domestic shredded prices.

The Platts price assessment for domestic shredded scrap was unchanged Tuesday at a midpoint of $452.50/lt delivered to Midwest mills.

Meanwhile, a Northeast scrap broker said that current offers for containers FAS East Coast "should be $450/lt for shred."

"My company has been very active, India is still buying," he said, adding that landed selling prices are now $495-508/lt CFR.

Sales of US shredded ferrous scrap into India have continued, but prices have receded slightly from a peak of about $510/lt CFR. The Northeast broker explained that Indian buyers are looking for the least costly scrap source. They negotiate between suppliers in the US and UK, which this week lowered offers into India, likely dragging down ex-US pricing as well.

"The UK dropped offers last week to below $500 (CFR India), so I think you will see downward pricing out of the US this week," he said.

A Southeastern scrap dealer has also seen prices for exported shredded slide just a little. Last week, he sold at $465/lt FAS Port of Savannah, Georgia. Now, he said, "$460/lt is very doable."

Demand for US material continues from offshore, he said, as well as from domestic mills, which must compete on price or lose tonnage to exports.

The Southeast dealer said he expected domestic ferrous pricing to remain at August levels, with a slight chance for a small increase. "I think if they [mills] were offered level [pricing] they would take it," he said.

"There's lots of talk sideways ... but also some resistance; some [scrap sellers] think it should be up $5-10."

Scrap supply-side challenges are underpinning prices in the US, he said. "Supply is still driving it. There is not an abundance of material," he added, echoing sentiments ranging from the Northeast to the Midwest US.

Scrap dealer margins are being compressed, he explained, as the cost to bring material into his yard has increased even as mills have enjoyed stable raw material pricing for the past two to three months.