US West Coast containerized scrap pricing fell to $200/mt CFR Taiwan on Tuesday for HMS 80:20, and US suppliers aggressively attempted to adjust prices to compete with Asian scrap and Chinese billet.
Sale prices fell to $200/mt CFR Taiwan from $205-$208/mt late last week, and US exporters slashed offer prices to suppliers as low as $175/mt FAS, sources said.
Platts assessed US West Coast containerized HMS 80:20 at $175-$180/mt FAS Port of Los Angeles. The midpoint is down $10/mt day on day.
Sources said the sharp drop in iron ore prices over the past week is mainly due to the strength of the US dollar, regional mills' preference for imported steel and billet from China, and a domestic market that has corrected faster than US scrap offers.
"Containers are at $200 now," one US trader said. "The Taiwanese are waiting for Japanese offers, as Japanese scrap comes off. The West Coast is poised for a major correction."
The Platts 62% Fe IODEX fell to $49.75/dry mt CFR North China on Tuesday, down $8.75 since last Wednesday and down from the 2015 high of $65.75/dmt reached on June 11.
Just "look at iron ore and the dollar," one US exporter said of the drop in prices.
One trader anticipated further pressure on container prices in the short term.
"I think we'll go below $200, but will continue to encounter much resistance from US West Coast dealers and eventually it will pop back up above $200 one to two weeks later," one trader said.
Source:Platts
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