The weekly US West Coast export yard ferrous scrap prices were rangebound on Tuesday in tandem with a sluggish imports market in Turkey with the Davis Index for US-origin HMS 1&2 (80:20) dropping by $6.85/mt to $420.65/mt cfr Turkey over the past week.
Collection prices in the EU dropped after exporters accepted lower prices given the recent deals and bids from Turkish mills. However, the UK bucked this trend with dockside prices rising in this region.
Domestic buying prices are rising in Asia. Japan increased its scrap export offer prices after Tokyo Steel lifted domestic scrap bids and increased the price on finished steel. Vietnam is encountering improved finished steel demand and is also facing rising domestic scrap prices.
Thailand, Malaysia, and China have also raised domestic scrap prices on tight local availability. Bangladesh and Pakistan, however, are showing limited interest in imported scrap amid a holiday but are expected to return as mills are facing low inventories.
The Portland weekly Davis Indexes for export yard scrap were flat with #1 HMS at $329/gt delivered, P&S 5ft at $354/gt delivered, and shredder feed at $251/gt delivered.
Regional mills in Portland that compete for scrap with exporters are expected to trend sideways to soft-sideways in May ferrous trading. Exports, while showing signs of hesitation due to continued price growth, are anticipated to remain relatively stable given the demand and tight global supplies.
In Los Angeles, dock prices trended unchanged this week. The index for #1 HMS was flat at $295/gt delivered while P&S 5ft continued at $306/gt delivered. Shredder feed also held unchanged at $200/gt delivered. The prospect that export prices will firm up in late April is unlikely. Several buyers noted that Asian mills are likely to wait to bid for scrap until the end of April or early May as import prices may soften, but the possibility is unclear as exporters may hold offers firm.
San Francisco’s export yard indexes fell only by $2-7/gt after remaining unchanged last week. The Davis Index for #1 HMS declined by $2/gt to $324/gt delivered and P&S 5ft fell by $7/gt to $331/gt delivered. Shredder feed dropped by $5/gt to $216/gt delivered.