US containerized ferrous scrap prices contracted on both coasts on Thursday. While buyers encountered firmer pricing in the prior week, especially on the East Coast, they noted that sellers were more willing to negotiate lower prices due to a global downtrend in ferrous scrap prices and limited bid activity this week.
A hesitation in purchasing at higher prices was also noted pending the COVID-19 uncertainty in buyers’ domestic markets and expected declines in the upcoming month.
The latest US-origin import scrap deal pricing to Turkey moved the US-origin HMS 1&2 (80:20) index down by $29.95/mt to $470.88/mt cfr on Thursday against $500.83/mt cfr on Jul 2. The lower deal prices to Turkey along with weaker demand and bidding prices from Asia are also reinforcing the expected decline in the August US domestic scrap market trade that may soften rates by $20-30/gt against July settlement.
The New York weekly Davis Indexes declined across all grades this week as buyers’ demand weakened and active bids lowered. The index for #1 busheling and HMS 1&2 (80:20) fell by $17/mt to $490/mt fas and $443/mt fas, respectively. P&S 5ft dropped by $19/mt to $466/mt fas as shredded trailed with a decline of $18/mt to $463/mt fas. Machine turnings decreased the least with a decline of $14/gt to $419/mt fas.
The weekly Davis Indexes in Los Angeles also fell for the third successive week with #1 busheling dropping by $12/mt to $425/mt fas, HMS 1&2 (80:20) down by $11/mt to $394/mt fas, P&S 5ft decreasing by $8/mt to $420/mt fas and shredded contracting by $9/mt to $421/mt fas.
San Francisco’s indexes trended down with #1 busheling dropping by $9/mt to $425/mt fas. HMS 1&2 (80:20) fell by $13/mt to $389/mt fas as P&S 5ft declined by $5/mt to $419/mt fas and shredded both declining by $6/mt to $420/mt fas.
In Seattle, containerized ferrous prices dropped by $6-8/mt this week. The Davis Index for #1 busheling fell by $8/mt to $420/mt fas as HMS 1&2 (80:20) declined by $11/mt to $385/mt fas. Shredded and P&S 5ft both declined by $6/mt to $416/mt fas and $418/mt fas, respectively.