The US containerized ferrous scrap market increased for the second successive week in most markets on Thursday. Containerized deals remain affected by low availability of containers and high freight costs.
Rising import bulk scrap prices in Turkey are buoying the global ferrous market’s sentiments. India, Bangladesh, Pakistan, Taiwan, and other emerging markets are actively making scrap inquiries for the purchase of imported scrap planned for May and June shipments amid tightening domestic supplies.
Some participants believe that buyers will want to continue securing loads prior to any price increases while others expect buyers to hesitate next week due to potential economic slowdowns amid new COVID-19 restrictions in some regions where infections have risen. Given the expectation of a strong US domestic ferrous market in May that may trade sideways to only slightly lower on seasonal effect, sellers are likely to remain firm on offers both in bulk and containers. Some buyers are expected to book bulk in the next few weeks due to the container shortage.
In New York, the weekly Davis Indexes for containerized scrap increased by $2-10/mt after a hefty increase of $13-28/mt last week. The index for #1 busheling rose by $10/mt to $439/mt fas as shredded climbed by $11/mt to $410/mt fas. P&S 5ft increased by $5/mt to $410/mt fas while HMS 1&2 (80:20) rose by $4/mt to $387/mt fas. Machine turnings climbed by $2/mt to $360/mt fas.
The weekly Los Angeles containerized scrap indexes rose by $6-10/mt following gains of $15-23/mt in the prior week. The index for #1 busheling increased by $6/mt to $397/mt fas, HMS 1&2 (80:20) rose by $10/mt to $368/mt fas, and P&S 5ft climbed by $7/mt to and $390/mt fas. Shredded scrap increased by $9/mt to $389/mt fas.
In San Francisco, the weekly indexes gained another $5-10/mt after the higher $15-23/mt range as Asian buyers returned to the buying spree since prices did not seem to be going down as expected. The index for #1 busheling climbed by $10/mt to $393/mt fas, HMS 1&2 (80:20) followed closely with a rise of $9/mt to $359/mt fas. P&S 5ft climbed by $7/mt to $380/mt fas while shredded rose the least by only $5/mt to $375/mt fas.
The Seattle Davis Indexes trended sideways though market participants informed of substantially higher deals in the pipeline. The index trended unchanged with #1 busheling at $393/mt fas, HMS 1&2 (80:20) at $365/mt fas, P&S 5ft at $385/mt fas, and shredded at $383/mt fas.
On the West Coast, some participants are rumored to be negotiating forward deals at or above $380/mt fas on HMS 1&2 (80:20) with a key factor being container access.