US containerized ferrous scrap prices increased in New York while the West Coast hubs of Los Angeles, San Francisco, and Seattle were rangebound with a hint of an upward trend noted into Thursday on better grades.
The New York weekly Davis Indexes were reenergized with recent trades at $480/mt fas and moving above on shredded grade after experiencing lower prices reported from $455-470/mt fas in the previous two weeks. Buyers report shredded at $480-490/mt fas from Georgia and New Jersey ports.
The index for #1 busheling and machine turnings climbed by $10/mt to $500/mt fas and $426/mt fas New York port, respectively. Busheling is primarily being offered towards the domestic market given the tight inventories and higher prices. HMS 1&2 (80:20) grew by $16/mt to $459/mt fas while P&S 5ft and shredded both gained $17/mt fas to reach $483/mt fas and $480/mt fas, respectively.
The weekly Los Angeles Davis Indexes for HMS 1&2 (80:20) declined by $4/mt to $389/mt fas while #1 busheling rose by $5/mt to $437/mt fas and P&S 5ft and shredded rose by $2/mt to $427/mt fas each. The better grades received additional inquiries and several market participants noted the possibility of an upward trend over the next two weeks. Buyers from Taiwan and South Korea also noted the semblance of an uptrend.
Traders note that buyers are delaying commitments though the global scrap is considered tight putting some upward pressure on prices. Additionally, they are hesitating due to the rise in COVID-19 concerns in their domestic markets and historical summer doldrums in ferrous trading.
Mills in Asia are facing summer electricity curtailments. The outlook is anticipated to continue limiting production until mid-September after which output may increase by shift or by adding approximately 20-30pc in production output into late September and October. Bangladeshi, Pakistani, South Korean, and Taiwanese buyers are anticipated to return next month.
Japanese domestic ferrous scrap prices have remained flat over the week with an anticipation of a price direction established by the Kanto tender late next week.
The San Francisco Davis Indexes for #1 busheling gained by $3/mt to $429/mt fas. HMS 1&2 (80:20) dropped by $4/mt to $384/mt fas while P&S 5ft and shredded rose by $1/mt to $420/mt and $421/mt fas, respectively.
In Seattle, the Davis Index for #1 busheling climbed by $3/mt to $423/mt fas as HMS 1&2 (80:20) continued the regional trend by contracting by $4/mt to $380/mt fas. P&S 5ft and shredded indexes trended unchanged to $418/mt to $419/mt fas, respectively.
The latest US-origin import scrap deal to Turkey shifted the US-origin HMS 1&2 (80:20) index down further by $7.77/mt to $455.71/mt on Thursday from $463.48/mt cfr on Aug 5 which had already declined over $7/mt from the corresponding previous week. US domestic traders mostly expect a soft sideways trade in the September trading week with fewer expressing an optimistic outlook in a scenario that has September regaining the price loss of $0-30/gt against the previous month encountered in the August settled prices.