US containerized scrap prices leaped on both coasts after ferrous prices soared over the past week on active deals.
Container supply is improving with more availability expected amid active negotiations for containerized scrap. As a result, containerized ferrous scrap prices surged on Thursday with some late-day deals reported at increases of $5-10/mt compared to earlier in the day.
Scrap buyers are actively quoting scrap imports from Australia, EU, Japan, Latin America, UAE, the UK, the US, and anywhere that raw material is on offer. Moreover, scrap export prices from the US are being supported by higher iron ore prices as well as heightened demand and short supply owing to global economic recovery after a year of varied shutdowns owing to the COVID-19 pandemic.
Asian and Turkish mills are facing higher domestic scrap prices and limited supplies, which is also increasing interest in imported volumes. Finished steel sales in China, the EU, the UK, and the US are considered to remain firm. The strong finished steel prices and long lead times are also encouraging the higher raw material prices.
In New York, the weekly Davis Indexes grew by $25-44/mt with #1 busheling increased by $25/mt to $491/mt fas and HMS 1&2 (80:20) climbing by $44/mt to $458/mt fas.
Some buyers reported buying heavy melt grades at close to higher grade prices on limited availability. Others reported being successful at buying on the more traditional spread of $10-20/mt for HMS 1&2 (80:20) against shredded.
The shredded index in New York rose by $31/mt to $465/mt fas while P&S 5ft climbed by $30/mt to $474/mt fas. Machine turnings had encountered a moderate increase of $5 last week but leaped by $42/mt to $428/mt fas.
The weekly Los Angeles containerized scrap indexes rose by $21-28/mt. The index for #1 busheling climbed by $28/mt to $441/mt fas while HMS 1&2 (80:20) rose by $21/mt fas. The index for shredded and P&S 5ft climbed by $24/mt and $26/mt, respectively, to $431/mt fas.
In San Francisco, the weekly indexes rose by $21-31/mt. The index for #1 busheling increased by $31/mt to $430/mt fas while HMS 1&2 (80:20) climbed by $21/mt to $394/mt fas. P&S 5ft and shredded both rose by $26/mt to $419/mt fas, respectively.
The weekly Davis Indexes in Seattle followed suit with increases of $21-29/mt. The index for #1 busheling rose by $29/mt to $423/mt fas as P&S 5ft climbed by $27/mt to $413/mt fas. Shredded climbed by $25/mt to $413/mt fas while HMS 1&2 (80:20) increased by $21/mt to $388/mt fas.
Turkey’s import scrap price via bulk has fueled the global scrap market. The latest Japanese Kanto scrap auction increases have also made Japanese scrap more expensive for buyers who are turning to the US for inventories. Turkey’s US-origin HMS 1&2 (80:20) increased by $20.22/mt to $502.93/mt cfr on Thursday compared to May 6.