US containerized ferrous scrap prices rose on both coasts with stronger gains on the East Coast as buyers were active in bulk inquiries and containers. The West Coast improved after two weeks of mostly rangebound trends.
Some Indian buyers were active today while others reported a lag in entering the market given the US domestic trading activity. Domestic market participants noted the likelihood of prices on secondary grades increasing by $20/gt again in June against May settled prices. The strong export activity along with a robust domestic market indicates the low probability of softer container prices over the next few weeks.
Indian finished steel prices have risen in some regions in tandem with domestic scrap prices. Some regions encountered softer domestic scrap prices, but this trend may not last due to positive market sentiment despite the active COVID-19 related lockdowns. Mill producers are focusing on export markets amid slower domestic activity with large mills announcing price hikes on finished goods.
Bangladesh and Pakistan are also facing regulations on lockdowns and oxygen resources. Pakistan’s steel production remains unchanged. Bangladesh’s buys have slowed on an upcoming holiday but are expected to return with interest for raw materials and participate in active Japanese tenders.
Domestic scrap prices in South Korea, Japan, Taiwan, and Vietnam are expected to rise on global cues and continued strong steel-making activity. Japanese exporters have increased scrap export offers this week. The Asian region’s positive sentiment is supported by Chinese import activity of semi-finished and finished steel goods.
In New York, the weekly Davis Indexes rose by $8-17/mt, against last week’s gains of $5-10/mt, supported by Turkish imports and active demand. The shredded index rose by $17/mt to $434/mt fas followed by #1 busheling, which climbed by $14/mt to $466/mt fas. HMS 1&2 (80:20) increased by $12/mt to $414/mt fas, while P&S 5ft climbed by $13 to $444/mt fas. Machine turnings index was more moderate in its increase of $5 to $386/mt fas.
The weekly Los Angeles containerized scrap indexes grew by $6-11/mt after a mild increase of $2-3/mt in the prior week. The index for #1 busheling rose by $6/mt to $413/mt fas, shredded climbed by $11/mt to $407/mt fas, and HMS 1&2 (80:20) and P&S 5ft both rose by $9/mt to $382/mt fas, and $405/mt fas, respectively.
Some market participants reported a higher number of inquiries for shredded that increased their own spread against P&S 5ft, which usually trends parallel to the grade. While container availability remains tight, some reported relief in the past two days and, therefore, increased bookings on pent-up interest.
In San Francisco, the weekly indexes increased by $9-10/mt after remaining unchanged in the prior week. The index for #1 busheling and shredded both increased by $10/t to $399/mt fas and $393/mt fas, respectively. HMS 1&2 (80:20) and P&S 5ft both rose by $9/mt to $373/mt fas and 393/mt fas, respectively.
Seattle’s Davis Indexes climbed by $3-6/mt with #1 busheling rising by $6/mt to $394/mt fas and P&S 5ft climbing by $3/mt to $386/mt fas. The HMS 1&2 (80:20) and shredded indexes both climbed by $5/mt to $367/mt fas. at $388/mt fas, respectively.