US containerized ferrous scrap prices continued trending up on the West Coast and were mostly rangebound with an upside on the East Coast on deal strength despite pushback from some buyers.
The US domestic scrap market began trading this week with mills trending at up $20/gt on prime grades such as #1 busheling and sideways on secondary grades against the June settled prices.
However, the East Coast is also encountering some downward pressure following some contraction in dock prices. Some mills are purchasing smaller volumes and secondary grades such as #1 HMS are considered in ample summer supply. Suppliers have hardly experienced an increase in secondary grades. Any uptick will depend on grade and region. Some sellers in the South are hoping for P&S 5ft to gain $5-10/gt in some transactions.
Indian mills have reduced production schedules and are evaluating the effect of COVID-19 information and effects on the markets and end construction, consumer activity. Bangladesh is encountering a flat buying market while Pakistan has raised some bid prices on domestic recovery.
The weekly Davis Indexes in New York for #1 busheling rose by $3/mt to $513/mt fas while HMS 1&2 (80:20) fell by $2/mt to $467/mt fas. Machine turnings remained unchanged at $434/mt fas. P&S 5ft and shredded regained from the $2/mt fall last week with an equal gain to $492/mt fas and $488/mt fas, respectively.
Some sellers sold shredded in a wide range of $485-492/mt fas despite some buyers, especially from India, withdrawing from the market. Buyers report firm selling numbers and overall scarcity of good quality scrap globally though some sellers and buyers have expressed the belief that prices may tick down next week.
In Los Angeles, the indexes for #1 busheling and P&S 5ft rose by $5/mt fas to $445/mt fas and $440/mt fas, respectively. HMS 1&2 (80:20) climbed by $6/mt to $414/mt fas as shredded increased by $4/mt to $441/mt fas.
Sellers report decent buying and trading activity with slightly better container availability in an environment of shorter scrap supply in comparison to previous summers. Buyers from Taiwan, South Korea, and Vietnam are actively quoting in the area. The LA dock has raised prices for sellers who can deliver larger tonnage.
Japanese export ferrous offers continue supported by unchanged domestic ferrous scrap prices.
San Francisco’s indexes rose for the second consecutive week by $3-8/mt with #1 busheling rising by $6/mt to $441/mt fas and HMS 1&2 (80:20) climbing by $8/m to, $411/mt fas. P&S 5ft increased by $5/mt as shredded rose by $6/mt to $435/mt fas.
In Seattle too, the indexes rose by $4-7/mt after the gains of $4-5/mt in the prior week. The weekly Davis Indexes for HMS 1&2 (80:20) rose by $7/mt to $405/mt fas while #1 busheling, P&S 5ft, and shredded climbed by $4/mt to $435/mt, $431/mt fas, and $432/mt, respectively.