US ferrous scrap export prices on downward trend
Platts reported that US ferrous scrap export activity continues to slow as falling prices in India and declining demand from China.
Ferrous scrap volumes into India are down. Indian imports of US ferrous shredded scrap dropped to 42,800 tonnes in January, about a third of the 128,130 tonnes imported in December. As for China, demand for scrap has abated to the point where players are not even bothering to quote prices.
An East Coast exporter told Platts that "I tried to get pricing from China over the weekend and the response I got was market demand for this material is too low. We'll pass this time."
A Midwest metals player with containerized scrap activities off the West Coast and out of South America said that prices were so low that margins had been squeezed to the point where business could not be done profitably. He added that "It's tough to do anything at these numbers."
An East Coast scrap processor and demolitions contractor said he also could not make any money on containerized exports. Extra labor charges associated with loading containers left no profit margin. Further, bids from exporters had dropped so low at USD 140 per tonne delivered to New York New Jersey export docks, that the scrap processor was no longer shipping to the docks, preferring to hold his tonnage in hopes of higher numbers going forward.
(Sourced from www.platts.com)
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