US containerized ferrous scrap prices softened on the West Coast but trended up on the East Coast for the third consecutive week.
East Coast trades are supported by expectations that US domestic scrap will trade sideways to up $20-30/gt in the early July ferrous trading week.
The weekly Davis Indexes in New York rose by $3-7/mt on Thursday after an increase of $8-11/mt in the prior week. The index for #1 busheling rose by $5/mt to $518/mt fas while HMS 1&2 (80:20) climbed by $7/mt to $468/mt fas. P&S 5ft and shredded grew by $3/mt and $4/mt, to $492/mt fas and $488/mt fas, respectively. Machine turnings rose by $6/mt to $438/mt fas.
Prices on the West Coast had increased last week following surging demand and slightly better container availability. However, Asian buyers are showing weaker demand and a wait-and-see approach as July approaches.
The recent domestic scrap price increases in Japan and strong demand are expected to continue supporting US-origin ferrous scrap prices. Additionally, iron ore prices remain firm with only marginal declines that are maintaining Fe 62pc at around $216/mt cfr North China.
The West Coast was reported as mostly flat by sellers but with buying prices at the lower end below those experienced in the previous week. For example, HMS 1&2 (80:20) deals were reported at $390-415/mt fas with most deals at $395-405/mt fas against more deals at $400-410/mt fas last week.
In Los Angeles, the index for #1 busheling fell by $7/mt to $435/mt fas while HMS 1&2 (80:20) trended unchanged at $403/mt fas. Shredded dropped by $4/mt to $433/mt fas and P&S 5ft also ticked down by $3/mt fas to $433/mt fas.
San Francisco’s indexes trended down slightly this week after rising in the prior week with #1 busheling, P&S 5ft, and shredded all dropping by $3/mt to $431/mt fas, $426/mt fas, and $427/mt, respectively. HMS 1&2 (80:20) fell by $1/mt to $398/mt fas.
In Seattle too, the indexes softened slightly amid uncertainty despite buyer demand as some believe that Turkey may further decrease import buying prices by $5/mt in upcoming deals. The weekly Davis Indexes for HMS 1&2 (80:20), P&S 5ft and shredded fell by $2/mt to $393/mt fas, $423/mt fas, and $432 fas, respectively. The index for #1 busheling declined by $3/mt to $427/mt fas.