The weekly Davis Indexes for West Coast dockside ferrous scrap were unchanged for the second consecutive week at Los Angeles, San Francisco, and Portland ports.
Dock prices have, in fact, remained unchanged in Los Angeles since early April and are unlikely to increase until June 1, Davis Index learnt. Dock prices in Portland increased in early May before trending flat for two straight weeks.
Market participants are reporting an upward price sentiment in the export market with slightly higher container prices and on rumors of some recent bulk deals, although specifics of those transactions are not fully available. However, the upward trend is not yet reflected at the docks.
In Portland, scrap yards report that domestic scrap prices are more attractive than dock prices. Domestic deliveries require additional processing for domestic buyers, but the differential is considered worth the investment. Some market participants on the buying side, however, believe that adequate amounts of inventories are flowing into the dock and the change in weather conditions into summer may see increased supplies.
Japanese domestic scrap prices continued flat this week compared to last week though Japanese ferrous export prices ticked up from Japanese shores last week. The increase in export pricing provides support for US sellers as Japan is an alternate source to send scrap to Asian markets.
In Los Angeles, the weekly Davis Indexes remained unchanged with HMS 1&2 (80:20) at $135/gt delivered dockside, P&S 5ft at $152/gt delivered, and shredder feed at $88/gt delivered.
The indexes in San Francisco also remained flat at $159/gt delivered dockside for HMS 1&2 (80:20), at $177/gt delivered for P&S 5ft, and at $124/gt delivered for shredder feed.
The weekly Davis Indexes in Portland were unchanged for HMS 1&2 (80:20) at $163/gt delivered dockside, for P&S 5ft at $177/gt, and for shredder feed at $127/gt delivered.
In the containers market, HMS 1&2 (80:20) widened up by $5/mt this week from $200-205/mt fas to $200-210/mt fas.