US West Coast weekly export yard ferrous scrap prices inched up in Portland, Los Angeles, and San Francisco.
The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased to $444.80/mt cfr on Tuesday registering a cumulative increase of $46.47/mt over the past two weeks as Turkish importers are accepting higher prices.
Cold weather conditions that are affecting the Pacific Northwest, Southeast, and South have reinforced the previously anticipated increase in March domestic scrap prices to $20-30/gt against January settled prices for secondary scrap grades. Prices of #1 busheling may also increase in tandem, maintaining the spread between grades, given the increase in the grade’s futures market, tight supply, robust demand and strong HRC prices.
In Asia, increases in billet and finished steel prices along with rising demand in China, Taiwan, Thailand, and Vietnam are supporting higher import scrap priced offers. Domestic prices have increased in South Korea and Taiwan this week on limited availability and strong demand. Scrap offers may increase in March for the domestic and import markets supported by historically high iron ore prices.
Japanese domestic scrap prices are also supporting rising export scrap offers with market participants anticipating further increases from Japanese exporters, which could support higher US scrap offers. An increase in bids from regional buyers such as South Korea, Vietnam, and Taiwan will put additional pressure on global scrap prices. Already import prices in South Korea increased by about $45/mt on the latest bulk deal this week compared to the previous US-origin deal in late January.
In Portland, the Davis Indexes increased for #1 HMS by $8/gt to $357/gt delivered. P&S 5ft and shredder feed improved by $10/gt, and $6/gt, respectively, to $263/gt delivered. Some scrap dealers continued receiving January prices on scrap as others began increasing their buying prices. Moreover, the region was hit with snowstorms that affected flows and production at scrap yards. A large dock was heard increasing effective prices by $15/gt and potentially raising those prices again by March 1.
The weekly San Francisco indexes for #1 HMS increased by $1/gt to $300/gt delivered and P&S 5ft rose by $2/gt to $311/gt delivered. The shredder feed index trended flat at $198/gt delivered.
The weekly Davis Indexes for dock prices in Los Angeles encountered a second consecutive week of inclines with the index for #1 HMS and P&S 5ft rising by $2/gt to $274/gt delivered and $294/gt delivered, respectively. Shredder feed inched up by $1/gt to $181/gt delivered. Dock buying prices have increased within the previous range for some feeder yards. Market participants speculate an increase of $20-30/gt at the docks prior to March 1.
The containerized market has rebounded robustly over the past week as prices on HMS 1&2 (80:20) moved from $320-325/mt fas early last week to $345-350/mt fas by the end of the week. On Tuesday, scrap prices continue moving up and prices on HMS 1&2 (80:20) are now at $390-395/mt fas per latest negotiations, up $70/mt compared to Feb 16 levels.