| This page was last modified on Saturday, July 31, 2010 02:49:53 PM
7/30/10 US Scrap Market Apparently Srengthening For August Friday, July 30 2010 US scrap sources tell say the market for August appears to be heading slightly upward, at least tentatively, following several months of declining prices.
“There is no question that the market is firming and will be up $10 to $20 a long ton in August - but (it's) not a real up market,” said one source on the US west coast.
“Turkey came back in the market and then the other Asian nations (such as Thailand, Malaysia and Vietnam) came in modestly to take advantage of buying at the bottom," he said. "It's still quiet in China and Korea.”
Another source added, “Most of the month I have been a sideways man, but lately have changed to a view of moderately up . . . The scrap supply has become very thin, and I believe the mills have cut a little too deeply. I look for some rebound (in August prices).”
A midwestern source agreed there has been more export activity recently, putting pressure on cut and obsolete grades, though he wasn’t certain that would translate into higher scrap prices, citing a weak steel market.
Last week, David J. Joseph Co CEO Keith Grass also said inquiries from the export market have picked up - something that had been absent for the last 30-45 days.
"I don't see a runaway bull market," he said, adding he believes the market has stabilized and could strengthen in the next 60-90 days.
Shredded scrap is currently selling for $300-320/l.t, delivered mill.
Turkish Mills Book More Scrap Imports, Prices Rise | Turkish imported scrap prices are advancing again as more deep sea cargoes have been booked recently, a Texas Trader learns from the market players.
The latest bookings were a mixed cargo of HMS1&2 90:10 and shredded scrap sold at $364.5/tonne cfr, and a shredded scrap cargo sold at $363.5/t cfr from US. Another mixed cargo of shredded and HMS1&2 70:30 sold at $345-355/t cfr from the European Union.
The offer prices have already gone up by around $20/t after the latest bookings. HMS1&2 70:30 is now being offered at $350-355/t cfr from EU, HMS1&2 80:20 is being offered at $365-370/t cfr and shredded at $370-375/t cfr from US suppliers.
CIS region prices have also followed the international price trends. A3 grade scrap is now being offered at $360-365/t cfr, $15/t higher than last week. |
Korean Government's Auction For US Scrap Fails Again | The second auction by the Korean government this year to secure 40,000 tonnes of US scrap was unsuccessful again due to the high offer prices from foreign suppliers. In the 27 July auction, US scrap supplier Sims posted the lowest-priced offers at $383/t cfr for HMS1 and $388/t cfr for shredded. Two other companies offered HMS1 at $398/t cfr and $405/t cfr.
The offer prices given at the auction are too high to accept, an official from the government's Public Procurement Service (PPS) says.
Market sources in Korea were already expecting that the auction would not be successful because PPS’s efforts to secure scrap comes at a time when the market is rising. Moreover, the offer prices are much higher than the latest US deep sea scrap booking price in Korea. Hyundai Steel, the leading scrap buyer in Korea, booked one bulk cargo from USA at $359/t cfr for HMS 1 about ten days ago. (See other scrap article above)
The PPS purchase price could be considered as a benchmark for suppliers selling to Korean steel mills. “If PPS decided to book the US scrap this time at such high prices, this could mean that Hyundai will find it almost impossible to contract US scrap below PPS’s bidding prices,” another trader in Seoul emphatically states.
PPS is expected to hold a third round of auction to complete its scrap stockpile project of 100,000 but the specific time-frame is unclear. The service has so far secured 60,000 t of scrap for its stockpile.
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Copper Continues To Rally On Manufacturer Optimism
| Copper prices continued to rally Thursday, hitting a two-month high as big U.S. manufacturers say they're optimistic about the economy. In other active trading, an extreme Russian drought supported wheat prices, which have rallied about 25 percent this month. Prices touched a 13-month high. Copper for September delivery rose 7.15 cents, or 2.3 percent, to settle at $3.1645 a pound, hitting its highest price since May 14. They have risen nearly 6 percent this week. Copper prices had peaked in January above $3.50 a pound, falling below $3 earlier this spring and summer as uncertainty about the recovery hit investors. Industrial metals such as copper are used in manufacturing and construction. Strong economic growth would mean more production at factories and more building, boosting demand for the metal and its production. George Gero, vice president at RBC Global Futures in New York, credited recent optimistic outlooks from big manufacturers for driving copper's gains. Heavy machinery maker Caterpillar Inc. said Thursday that orders were growing and it would increase production in the second half of the year. It raised its profit outlook. Other strong forecasts from UPS Inc., AT&T Inc. and 3M Co. Thursday helped drive the stock market higher as investors priced in better expectations for an economic recovery. Automaker Fiat, which controls Chrysler, said Wednesday it posted a profit in the second quarter because of improved sales of farm equipment and trucks. Copper is an important component of wiring and parts in autos, as well as telecommunications and industrial equipment. Other metals contracts mostly edged higher as the dollar tumbled and stock prices rallied. A stronger dollar makes commodities that are based in dollars more expensive for foreign buyers. Silver for September delivery rose 31.7 cents, or 1.8 percent, to end at $18.120 an ounce, while September palladium gained $4.75 to settle at $456.90 an ounce. October platinum ended almost flat, however, dipping 40 cents to settle at $1,529.40 an ounce. |
Ferrous Scrap Prices Drift Lower in July
| Spot market scrap buyers were able to pay from $15 to $47 per ton less for their ferrous scrap in the July buying period, according to pricing survey data of the Raw Material Data Aggregation Service (RMDAS), compiled by Management Science Associates' (MSA), Pittsburgh. Prices in the July buying period ranged from a low of $291 per ton for No. 1 heavy melting steel (HMS) in the South region to $425 per ton for prompt industrial composite grades paid by mill buyers in the North Central/East region. All grades of ferrous scrap were available to mill buyers for less in July, with the prompt industrial composite grades (new production scrap consisting of #1 busheling, #1 bundles and #1 factory bundles) falling the most in value?by $32 per ton an average nationwide. Regionally, some of the sharpest falls took place in the RMDAS North Midwest region (consisting of Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, Wisconsin and the northwest corner of Indiana). In that region, mills paid an average of $47 per ton less for prompt grades; $35 per ton less for No. 2 shredded scrap and $25 per ton less for No. 1 HMS. Recyclers are seeing scrap supply decline along with the prices in some cases. A scrap recycler in New England describes generation as being down "considerably," with some factories slowing down for the summer season. Another recycler says the amount of construction and demolition scrap may be up compared to the winter months, but that considering the time of year the amount of scrap being generated from this sector is disappointing. On the demand side, domestic steelmaking activity in June stayed roughly equivalent to May's figures, according to the Worldsteel Association, Brussels. Steelmakers in the United States made 7.2 million metric tons of steel in June, up slightly from the 7.17 million metric tons churned out in May. Globally, there were signs of either seasonal slowdowns or economies cooling down, based on June versus May figures. China, the world's largest steelmaker, slipped from making 56.1 million metric tons in May to 53.8 million metric tons in June. A holiday period in June could be part of the reason, although both figures and government pronouncements from China are pointing to a slower overall rate of economic growth in that nation in 2010 compared to the preceding several years. China's steel production figure was not the only to decline in June compared to the month before. Producers in Germany scaled back from 4 million metric tons to closer to 3.8 million, and Russia's mills produce about 400,000 tons less steel. |
FERROUS SCRAP TRADERS SEE EXPORTS CLIMBING
World Scrap, Iron Ore, Steel and Freight Price Update The reversal in Turkish scrap fortunes continued last week, with imported HMS (80:20) prices putting on a further US$11, to hit US$333/tonne. Whilst this week-on-week (w-on-w) move remains down on its month-on-month (m-on-m) price, continued buying has continued to push the price higher, with shredded deals at the start of the week breaching the US$350 mark.
Meanwhile, in the US, the much touted "potential US$50/l.ton fall" never materialised. Despite the shred overhang, our feeling that the doomsayers were overly pessimistic has been borne out, with a week-on-week fall of US$19/l.ton, making the US obsolete shredded price US$314/l.ton last week. With over a million tonnes booked into Turkey last month, coupled with continued buying and increased Indian interest, we have seen, as expected, a softer landing. Whether this price reduction will reduce collections enough to spark more volatility later this quarter remains to be seen.
Last week, the average of the LME's daily cash prices for billet remained static w-on-w at US$418/t - a relief from the precipitous plunges seen as confidence ebbed since the beginning of April. As The Steel Index’s assessments of rebar in N. and S. European markets respectively moved up to US$582 and US$566 per tonne, the spreads between these prices and billet increased to US$164 and US$148 apiece.
At the same time, the iron ore spot market has continued its downward slump, reflecting a slowdown in China and drop in confidence. Prices fell to to US$118.1 on July 12th - their lowest point this year and well off the pace of their high of US$186.5/dmt for 62Fe material.
A break-down of the sheet markets shows a continued bearishness effecting all markets.
• US HRC markets fell a further US$9 w-on-w, hitting US$619/s.ton, continuing a losing streak which has seen US$56 m-on-m. All sheet products fell in sympathy, as did plate.
• Northern Europe is slower into the cycle than their transatlantic counterparts, nevertheless, HRC hit €590/t, €15/t off w-on-w and €25/t off m-on-m.
• S. European HRC reached €544/t, slipping a further €5/t w-on-w and €46/t m-on-m.
• Chinese exports to N. Europe/N. America of HRC, CRC and Plate have all followed this trajectory.
The cost of shipping steel along 12 common routes fell almost uniformly w-on-w, the exception being the China-US route, putting on 3.7%. The same is true of capsize vessel booking rates, with only the India (West coast) – China route bucking the trend, adding 6.7% week-on-week.
Baoshan Steel Cut Prices for a Second Month on Demand |
Baoshan Iron & Steel Co., the biggest publicly traded Chinese steelmaker, cut prices for a secondmonth amid weakening demand from makers of automobiles and appliances. Prices of low-carbon hot-rolled and some cold-rolled products were slashed by 300 yuan ($44) a metric ton, the Shanghai-based mill said today on its trading website Bsteel.com. The steelmaker kept prices of other hot-rolled and cold-rolled grades unchanged. Steel prices in China, the biggest consumer of the metal, are likely to drop 10 percent for the rest of the year because of high inventory and poor demand, JPMorgan Chase & Co. said in a note dated yesterday. China Steel Corp., Taiwan's largest producer, today lowered prices for the first time since January. "Global steel supply outstrips demand," said Gisele Tseng, a Taipei-based analyst at Capital Securities Corp. "The outlook will depend on levels of inventories in China." Baoshan Steel fell 2.8 percent to close at 5.98 yuan in Shanghai, extending this year's decline to 38 percent. The benchmark Shanghai Composite Index fell 1.6 percent today. China Steel dropped 0.3 percent to NT$30.35 in Taipei trading before its price cut announcement. Baoshan Steel also cut prices of some zinc-galvanized sheets by 300 yuan a ton, lowered heavy plate prices by 500 yuan and reduced silicon steel prices by 300 yuan to 500 yuan, it said on the website. Government Measures The company last month lowered prices by 300 yuan to 1,000 yuan a ton for July delivery, the first cut in eight months, amid concerns government measures to curb credit growth and speculation in the property market will trim demand. Steelmakers in the third quarter face price pressures on raw materials and from customers, Baosteel Group Corp., Baoshan's parent, said last week. China Steel, based in Kaohsiung, lowered prices by an average 4 percent for September, and will also retrospectively slash prices for earlier orders placed for July and August delivery, it said in a statement today. Angang Steel Co. is also considering cutting August prices by 400 yuan a ton, UC361's analyst Hu Yanping said today. Angang hasn't made a final decision for the August prices, she said.
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China Metal Recycling Urges Scrap Consolidation
| US Ferrous Shredded Scrap Down $30 In Early Transactions |
US ferrous scrap prices fell on early activity as buyers and sellers began trading after the long US Fourth of July holiday weekend. The Platts price assessment for shredded scrap dropped $30 to a new midpoint of $315/lt delivered to Midwest mills as prices finally buckled under the combined weight of oversupply and softer mill demand. Most sources agreed there was a substantial amount of shred overhanging the market in June and US steel production has been down the last two weeks, according to American Iron and Steel Institute data. A Northeast scrap dealer sold a four-figure tonnage of shred to a large Midwest mill at $315/lt delivered and will deliver additional tons at a to-be-determined price. He sold heavy melting scrap No. 1 at $275/lt delivered to the same mill. A Northeast scrap broker told Platts that shredded was trading in the $315-320/lt range. Cut plate and structural scrap, which has been in tighter supply due to a dearth of demolition activity in a moribund construction sector, was sold at $335/lt delivered. A Midwest scrap dealer was in the midst of doing business when contacted by Platts. "Can't talk now," he said, switching between phones as he worked to close deals in this shortened week. He noted one small early shred sale at $310/lt delivered Midwest, but said he expected the market to come out "closer to $325/lt." All three sources said they expected most business to be done this week as US mills had largely waited until after the holiday to make their scrap buys, leaving room for prices to settle further by Friday. |
FERROUS PRICES COOL IN HIGHER TEMPERATURES July 9, 2010
Scrap offer prices into Turkey advance, demand still slow 6-9-2010 Turkish imported scrap prices are increasing as suppliers have since last week been trying to push prices up despite slow Turkish bookings, Steel Business Briefing learns from market participants.
The latest deep sea cargoes booked into Turkey were of UK origin. One was 16,000 tonnes of HMS 1&2 80:20 sold at $331/t cfr, the other 25,000t of shredded scrap at $339/t cfr,
Shanghai copper is set to rise on Thursday, chasing gains in London spurred by the U.S. dollar's slump and a rally on Wall Street ahead of what appears to be an upbeat corporate earnings season. FUNDAMENTALS Three-month copper on the London Metal Exchange CMCU3 rose $71.75, or 1.1 percent, to $6,711.75 a tonne by 0018 GMT. When Shanghai closed on Wednesday, LME copper stood at $6,525.25 a tonne. The surge in the euro and U.S. stocks helped copper reverse losses in the previous session as investors looked past data showing slower U.S. non-manufacturing sector growth and an unexpected fall in German manufacturing orders. All eyes are on China copper imports data for June due out this weekend, with analysts saying imports may rise due to the positive arbitrage opportunity in early to mid-May and declines in LME stocks. Imports of refined copper by top consumer China dropped 9.7 percent in May from April, falling for the second straight month MARKETS NEWS The euro rose to a seven-week high against the dollar in technical trading after the breach of a key resistance level prompted some investors who had bet against the single currency to buy to prevent losses. [USD/] U.S. stocks logged their best one-day gain in about six weeks on Wednesday after a bullish forecast from financial company State Street Corp fueled optimism about the coming earnings season and helped the S&P 500 break above a major resistance. Oil prices rose nearly 3 percent, snapping six straight sessions of losses, on hopes of a strong earnings season and signs that U.S. crude inventories fell sharply as a result of Hurricane Alex. [O/R]
TURKISH BUYING DRIES UP AS HIGHER SCRAP OFFERS INCREASE
FERROUS BUYERS, DEALERS FAR APART ON JULY PRICES Steel mill buyers and ferrous scrap suppliers remain far apart on likely prices for July.Some mill buyers are looking for across-the-board cuts of $50 per long ton, arguing that they aren't facing much competition from the ferrous scrap export market and that they have enough inventory to ride out any dealer resistance. But dealers aren't buying those arguments. While they will accept reductions of as much as $25 per ton, one Ohio dealer said, larger price reductions will cut off supplies and encourage dealers to hold scrap. I know the mills have been talking about cutting prices by as much as $50 a ton, but a lot of the dealers are saying, 'Yeah, we'll accept a reduction, but if it's more than $25 (per ton) call me in August or September'," a Chicago-based broker said. And an Eastern processor said that export demand has revived in the past two weeks and exporters are getting higher prices now. Although he and other inland dealers haven't seen any new offers from the docks, these could be coming within a few weeks if the export yards' inventories get too low and they still have ships to load. Much of the resistance is emerging from small and mid-sized scrapyards, while the large scrap processors might be more active sellers because they need to move inventory, the Chicago broker said. That means there is a question whether all will be able to resist. One mill buyer believes he will be able to buy much of what is needed from the major scrap processors. At the same time, one major mini-mill has prime scrap bought in the United Kingdom and elsewhere in western Europe still arriving in this country, he added. But some dealers question that import tonnage, saying they have been hearing that claim for several months now. If any of that tonnage is still en route it might be destined only for the company's East Coast sheet mill, they said. Some scrap industry sources said they had been told that from seven to as many as 13 cargoes of mill-grade No. 1 busheling have been imported from Britain. Whether true or not, that import tonnage combined with weaker sales of obsolete scrap by U.S. exporters is seen as the means for mill buyers to jawbone the prices and push for cuts of as much as $50 per ton. While exports are lacking, some scrap dealers said that U.S. scrap imports no longer make sense. "The stabilization of the U.S. dollar will work to keep domestic brokers from importing cheaper scrap from other countries," an East Coast source said.Some grades of obsolete scrap are abundant, but a lack of demolition activity is putting pressure on plate and structural scrap, a key grade for many domestic mills who buy demolition scrap as an alternative to the No. 1 heavy melt that export yards have been gobbling up in recent years.Inflows to yards are waning as buying prices have been lowered. One executive said that he is buying 220 tons per day compared with more than 500 tons daily just a couple of months ago. Also, lower prices for old vehicles have reduced flow of junk cars to auto shredders.Prime industrial steel scrap grades like No. 1 bundles and No. 1 busheling remain tight as well, several sources said, and some expect that supply to tighten further in July as the auto plants and their component suppliers shut down for summer vacations.Not all of the auto plants will be closed this year, as often has been the case in past years. Instead, some will have what one trader calls "rolling shutdowns" in which some plants will be closed for a week while others continue to produce.The talk about a downward spiral in July has been commonplace but might have hit bottom last week. "A week and a half ago we were hearing $30 to $50 down," as East Coast source said Monday. "This morning, a major broker said that things are coming up and it could be down $20. We could be at the bottom. Others are less bullish. "We have another month (August) with at least sideways pricing. I don't see any near-term uptick in demand," a Canadian scrap executive said. "In July, prime will be down $40 and shred and cut grades will be down $30 due to weak demand from service centers and Chinese demand slowing. And there is an abundant availability of scrap on the East Coast because of a lack of export opportunities."Eastern and East Coast dealers said that mills haven't delayed shipments. "We have not been 'put on schedule,' but there have been questionable calls on quality and cancellation of contracts, only to have the mills say that they will still buy from us but only starting next month," a Canadian scrap dealer stated. The Southwest appears to be more insulated from the deceleration in prices. "We are expecting $15 down for shredded scrap and for No. 1 heavy melting scrap. We will not hold and we will ship about the same as normal for July," a southwestern source said. "We believe that the scrap business should simply work on a margin and we do not in general hold or 'play the market.' We buy and sell against the current price." If supplies of prime scrap tighten and those prices rise, the mill might not have much of an alternative. One U.S. pig iron trader said many of the small pig iron producers in Brazil will shut their furnaces, especially when the new ore price increase takes effect. They need about $440 per tonne f.o.b. port to be profitable, and the prices of prime industrial steel scrap are at that level or lower in the U.S. market, he said.
UK FERROUS SCRAP PRICES EXPORT PRICES DOWN AGAIN; POOR DEMAND China sits out. Sends USA Scrap Ferrous Prices Downward
FERROUS SCRAP SAID NEAR BOTTOM, BRINGS SHAGANG GROUP INTO MARKET
Ferrous Scrap Exports In a Lull and Turks Limit Buying FERROUS SCRAP MOVE ARE MXED..EXPORT MARKET IS THE KEY
Indian Scrap Import Offer Prices Fall Further Indian scrap import offers have fallen further since the week of 17 May, confounding views then that prices had bottomed.
Sellers are offering containerized shredded scrap from UK and elsewhere in Europe at $370/tonne cfr to Chennai port on the east Indian coast but buyers are unwilling to purchase above $355-360/t cfr. This is down from $400/t cfr (for offers) and $385-390/t cfr (for transactions) three weeks ago, as Steel Business Briefing reported. However, firm domestic demand in the US is keeping offers for US-origin scrap at $380-390/t cfr.
VIEWS ON FERROUS SCRAP MIXED, SOME PRICES SLIP
HMS SHIPMENTS TO TURKEY STEEL MILLS OFF BY 11%
Steel Scrap Markets in FluxThe Steel Index reported a contrasting picture in ferrous scrap markets on May 21st, taking into account transactions between 17th and 21st of May.
The Turkish market saw a continued fall, to a new low of US$363/tonne for HMS 1&2 (80:20) imported and delivered on a CFR basis.
In contrast, obsolete shredded, tracked in the US domestic market (East of the Mississippi) on a delivered mill basis, rose US$8/l.ton to US$363/l.ton.
As the US market’s prices stabilised, offer prices from the American East coast to Turkey remained stubbornly high relative to European ones, prompting no action. Domestic demand for scrap has remained robust, though prices were hit earlier in the month by seasonal supply increases entering the market and falls in export demand off both coasts to key Turkish, Chinese and Asian markets.
Going forward, many expect to see the Turkish buyers coming back into the market after last week’s activity, the same people expect the prices to firm due to US stickiness at higher levels and European 70:30 offers generally remaining around the US$370/tonne mark.
Indian markets for imported shredded seemed unimpressed by offers of US$395/tonne (cfr) last week, with few bookings being made.
The weekly average of the LME’s daily Mediterranean billet cash seller prices have declined by 25% over the last 6 weeks, to US$440/ton.
In contrast, Northern and Southern European rebar prices are 9% and 3% higher over the same period.
STEEL MAKERS SCAVENGING FOR SCRAP ALTERNATIVE TUESDAY MAY 25, 2010 ASIAN DEMAND FOR SHREDDED SCRAP ALMOST AT STANDSTILL 5-25-2010 FERROUS SCRAP EXPORTS FALL AS BUYERS SIT TIGHT This page was last modified on Saturday, July 31, 2010 07:49:53 PM
COPPER SCRAP DEALERS HOLD ON TO INVENTORIES AS PRICES SINK
Scrap Prices In S.E.Asia Down$20-$30.00 USD Turkey scrap buys may stem price declines
SCRAP PRICES IN SE ASIA STARTING TO FALL
FERROUS SCRAP PRICES SEEN FALLING IN MAY
Video SBB Steel News Update - German 26 Apr 2010 |
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 Exchange rates 29 Apr 2010
| | currency | rate | +/- | | GBP/USD | 1.521 | -0.012 | | EUR/USD | 1.325 | -0.004 | | EUR/GBP | 0.871 | +0.004 | | EUR/JPY | 124.5 | -0.220 | | GBP/JPY | 142.9 | -0.872 | | USD/JPY | 93.98 | +0.153 | | USD/RMB | 6.825 | -0.001 |
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| | Preview of Today's Top Article Improved stainless demand and prices boost Acerinox output Spanish headquartered stainless steel group Acerinox is hoping to deliver Q2 results close to pre-crisis levels and is set to maintain production at near 100% capacity at all its plants until July, Steel Business Briefing learns from its quarterly figures. Overall production of stainless at the group's plants rose 57.7% year-on-year to reach 535,500 tonnes in Q1. Nearly 44% of sales were in the USA and 42% in Europe. Asia was the next largest market, taking almost 9%. to read more subscribe here
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This page was last modified on Saturday, July 31, 2010 08:49:53 PM
| | Jamaican Gov't Halts Scrap Metal Trade | |
GOVERNMENT has put a stop to all scrap metal trade effective Wednesday, with the exception of manufacturers who generate their own material, and do not buy from other sources. "This must be upon submission of evidence to the Customs Department to verify," Minister of Industry, Investment and Commerce Karl Samuda said today. He made the announcement at the ministry's New Kingston office where he met with scrap metal dealers. The decision followed the theft of millions of dollars worth of infrastructure across the island, and most recently at the Colbeck Irrigation pumping station in St Catherine, where scrap metal thieves vandalised critical agricultural equipment with losses estimated at some $5 million. Samuda said the situation, which has intensified over recent months, was untenable, and the industry was failing to operate in the best interests of the country. The ban does not apply to containers that are already on the ports. Other containers, which have already been packed, will be inspected by a special team comprising the Jamaica Customs Department, the police and other stakeholders, and then repacked. Samuda said the Customs Department has been told to complete this process by Friday. And effective immediately, there will be no further export of copper. "No metal that is smelted prior to being packed will be permitted for export. The metal must be in its original state…it may be compacted, it may be cut up into pieces, but it must remain in its original state, and that is particularly in respect of certain types of metal. They must not be processed in any way at all," Samuda emphasised. The minister said that when he speaks in Parliament on May 4, he will outline all the processes necessary as it relates to the export of scrap metal. He said that this morning's meeting with scrap metal dealers failed to yield a satisfactory explanation from the industry that would "cause any other action than the one I decided to take". Samuda spoke of the importance of the scrap metal industry despite the ban, but argued that, "the scrap metal industry is sick, and needs to be stabilised, and that's precisely what we are going to do". "We cannot continue business as usual. There has to be some dramatic changes in how we do business in this trade," the minister emphasised. The scrap metal industry earned more than $100 million in 2009. |
| | This page was last modified on Saturday, July 31, 2010 09:49:53 PM Turkish buying prices for US, European Ferrous Scrap Rise $20/TPHILADELPHIA -- Ferrous scrap prices into Turkey shot up again this week as mills there booked more cargoes ahead of Ramadan, which is set to begin Aug. 11, market sources said. Turkish buyers booked deep-sea cargoes from Europe and the United States, paying $15 to $20 per tonne more than the deals they sealed last week. One U.S.-origin cargo of mixed shredded and an 80-20 mix of No. 1 and No. 2 heavy melting steel scrap sold at $361 per tonne c.f.r. Turkey. Another deep-sea cargo from a recycler in northern Europe sold for $364.50 per tonne on the same terms. This parcel comprised 24,000 tonnes of shredded material and 10,000 tonnes of the 80-20 No.1 and No. 1 heavy melt mix. A cargo of shredded material was sold last week at $348.50 per tonne. The sharp price rise came as a surprise to many merchants, sources said. The strength o f the Turkish demand has spurred many of the U.S. East Coast export yards to boost their buying prices in the past week to as high as $280 per long ton for No. 1 heavy melt. But they appear to be filling their needs from local scrap dealers and their own feeder yards, and haven't reached inland for much material. Dealers in western Pennsylvania and Ohio said they haven't received any offers from the docks that have prompted them to turn away from the domestic market. If they do need scrap, the exporters might have to raise their prices even higher since many domestic scrap dealers are anticipating higher prices for obsolete scrap grades like heavy melt and shredded in August, one Pittsburgh-based dealer said. Prices this month in the Pittsburgh, northern Ohio and Chicago markets have ranged from $300 to $310 per ton on a delivered-to-the-mill basis for heavy melt scrap, one of two key grades for many exporters. Shredded scrap, the ot her top ferrous scrap export grade, is produced by most of the large export yards. In the Far East, India and Vietnam have been active buyers from offshore scrap suppliers, one U.S. trader said. Indian importers have been buying both containers and bulk cargoes. Elsewhere in the region, there is little or no activity, the trader said, with China and other major ferrous scrap-importing nations remaining on the sidelines as they look to buy at lower prices. At the same time, he said many of the U.S. exporters believe the domestic market is headed upward in August and they are looking for higher prices for their export tonnage. "There is a huge gap between what they (Asian steelmakers) want to pay and what the (U.S.) exporters are offering," he said, adding that he believes Asian players will have accept higher prices if they hope to obtain any scrap.
Ferrous Scrap Market Still Quiet In East Asia | The ferrous scrap import market in East Asia is still quiet. Demand for finished steel is weak due to the summer lull in the Northern Hemisphere and the monsoon season is dampening the region’s business.
Offer prices for bulk scrap are still at $380-390/tonne cfr levels. A Chinese trader says that shredded is currently offered at $385/t cfr – which compares with a booking of around $370/t cfr in mid-July.
Taiwan's China Steel Corp is rumoured to have recently booked Bonus grade (plate & structural) scrap at around $420/t cfr. Many traders said that this price is too high for the current market but add that CSC has stringent requirements for its scrap.
Lower-priced bookings are also reported. About ten days ago Hyundai Steel booked one bulk cargo from USA for September arrival at $359/t cfr for HMS 1. The original offer price was more than $365/t, but since Hyundai wanted to pay under $360/t, the supplier provided only one cargo, a local trader tells SBB. Also, one cargo of US-origin composite scrap of shredded/Bonus/HMS for September shipment was booked in recent days at $370-375/t cfr Malaysia.
Two gearless vessels shipping around 57,000 t each of shredded/plate & structural/HMS from West Coast USA are being offered by Chinese trader Fengli, at $370/t cfr SE Asia for HMS. One vessel is due to arrive in early August and the other, second half of August."Not many ports in SE Asia have the supporting discharging facilities for a gearless vessel," a trader explains on why the offer is still available for the past two weeks. "The vessel is too big (for Vietnamese ports)," a local trader says.
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Plastic Markets Snapshot
A sharp decline in monomer prices as spring began produced a volatile resin market in the first seven months of the year. PE. After starting the year strong, analysts suggest that North American PE demand will rise just two percent to three percent this year. A review of market trends in the past few months is instructive. Resin prices rose about six cents per pound in the third month, and, due to higher monomer costs, PE producers wanted a nickel per pound more in April. For much of the first quarter, ethylene supplies remained limited, because about one-fifth of production capacity was taken off-line due to planned and emergency rollbacks. Output subsequently rose when crackers came back on-line, and a steep dip in monomer prices meant that the attempt by resin makers to push prices higher in April failed. Price relief was accomplished in May and June, when HDPE prices fell by more than ten cents per pound, and large buyers pushed for additional price cuts in July, while producers sought flat pricing. That said, industry analysts now say that the ethylene and PE markets will move toward balance at the end of the summer. PP. The PP market is also operating in a seesaw fashion. One side says pricing will move upward as a result of tight supplies, especially because sales are up five percent this year. Analysts also expect domestic demand to rise about by this level for the remainder of the 2010. On the other side of the debate, a sharp falloff in monomer pricing this spring, due to oversupply, led to resin prices moving downward quickly in May, by about 12 cents per pound, and in June, by another eight cents. This was exacerbated by the reluctance of many resin buyers to place orders until the bottom of the price slump had been found. These players expect pricing to again dip a tiny bit in July and then flatten out. PVC. A similar story can be told for PVC, where prices rose earlier this year, due to tightness in the ethylene market, and then fell back down when ethylene supplies increased as production units were brought back on line.
SCRAP NEWS BULLETIN
White Star Police Report
Recycler Charged With Fraud For Alleged Bad Plastic Deal
By DAN ARSENAULT Crime Reporter
Wed. Jun 30 - 4:54 AM
A Waverley plastic recycler is facing fraud and theft charges after a
Calgary businessman allegedly paid more than $16,000 for some plastic that
never arrived.
Stephen John Cole, 45, has been released from police custody and is due in
Dartmouth provincial court Aug. 3. He'll face a charge of fraud over $5,000,
theft over $5,000 and making a false statement in writing.
Cole is the president of N.W. Cole Associate Appraisers Ltd., a company that
owns White Star Polymer Management and Plastic Recycling Services.
Police allege that a Calgary business sent cheques to Cole on Aug. 6 and
Aug. 25, 2009, but the plastic they ordered was never shipped.
The issue went to small claims court and the Calgary business won, but still
didn't get the money.
Det. Const. Dana Drover, of the Halifax Regional Police-RCMP integrated
financial crime unit, said Cole allegedly signed in court to make a
repayment
but didn't, which is how the false statement charge arose.
The Chronicle Herald wrote a story about Cole's business in May, when an
Australian businessman came to Nova Scotia seeking $52,000 he allegedly gave
Cole for plastic that was supposed to be sent to China last fall and winter. but was never sent
That businessman, alleged that
Cole contacted them and provided photos of plastics he could send for
recycling. The company normally purchases plastics in Australia and
occasionally in Israel,
The company has also issued a complaint with Halifax police, and so did another businessman
from Thailand for a similar alleged failure to deliver goods that had been
paid for.
"There are other complaints that are in various stages of investigation,"
Drover said.
White Star remains in operation and Cole is still working there, according
to a man who answered a phone at their Waverley office Tuesday. He wouldn't
provide any more information.
The Birth of Evermore Recycling Send Shock Waves cross UBC Land
ALUMINUM ALLOY AND SCRAP PRICES SLIP 6/10/10
JUNE 8, 2010 TOKYO STEEL CUT SCRAP PRICES 8TH TIME IN A MONTH
THURSDAY JUNE 3, 2010 INDIAN SCRAP PRICES CONTINUE TO SLIP ON LOW DEMAND
CHINA DEMAND FOR LEAD AND ZINC SCRAP TO DRAMATICALLY INCREASE
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