Hoffman: Asian FE Scrap price bottom?

Numerous mid-sized California and Baja Mexico export yards had little to no inventory on the ground last week as most had sold forward in the falling March market. Looking to secure their margins, they dropped prices across the scale that resulted in lower-than-normal flows.

“I’m sold out through mid-April and even longer if the flow doesn’t pick up” one yard owner said, which turned out to be the position of numerous USWC suppliers. Meanwhile, Asian buyers attempted to drop to prices to $335/mt FAS – $350/mt CFR Taiwan for container scrap, but by the time buyers made the $335 offers most suppliers had taken orders at above $340 on the way down. One supplier who held out with his inventory actually achieved a $5 increase to $345/mt FAS – $360/mt CFR Taiwan on March 26.