Prices for ferrous scrap exports from the US West Coast increased for a third consecutive week this week, with deals for containerized heavy melting scrap I/II (80:20 blend) being concluded at $358/mt CFR Taiwan on Wednesday, up about $2/mt compared with transactions on Friday.
Dealers came close to achieving the $360/mt CFR bids they had been offering since last week and now a majority of offers are in the $360-362 range, according to market participants.
"There may be some resistance on anything higher," one US West Coast scrap dealer said. "Asian rebar sales hit a bump in the road this week, and we'll have to wait and see what next week brings."
The Platts daily assessment for containerized HMS I/II (80:20) inched up $2/mt on Wednesday to $327-332/mt FAS US Port of Los Angeles.
A decline in the value of the US dollar since late September, coupled with slow scrap intake on the West Coast, has helped boost prices.
High temperatures in late summer in the west slowed scrap intake traffic from peddlers, according to market participants. However, a recent uptick in demolition work has been reported.
Up until this week, some Asian mills were having sporadic success in achieving price gains on finished steel, allowing them to match the higher offers from US suppliers.
"They have been trying to raise their finished product prices," another US West Coast scrap supplier said. "Some mills were able to get away with it, but there was some resistance. Rebar prices went up, but there is resistance on hot- and cold-rolled" coil.
