US West Coast dockside ferrous scrap prices fell by about $10/gt on transactions finalized at reduced buying prices. Dock prices trended down in August following lower container prices, lower import bulk prices to Turkey, which influences the global trajectory of ferrous prices, softer US domestic scrap market, and lower bulk bids surfacing from potential buyers in Asia.
The Davis Index for US-origin HMS 1&2 (80:20) fell by $15.78/mt to $463.60/mt Turkey on Tuesday from $479.38/mt cfr on Jul 27, adding to the $5.50/mt already lost in the previous week.
EU and Russian dock prices softened on lower realized prices and global scrap moves influenced by Turkey’s lower buying scrap deals this week.
Tokyo Steel cut its domestic scrap prices by about $4.5/mt and that is anticipated to soften export offers from Japan to Asian buyers. Scrap generation could be affected and balanced after the upcoming Obon holiday and could limit discounts on export offers.
Vietnam’s economy is being affected by extended COVID-19 lockdown measures. Domestic scrap prices in Malaysia and Thailand also fell slightly while South Korea and Taiwan prices held ground on tight scrap inventories although mills are facing weaker demand for steel products due to summer seasonality.
Bangladesh and Pakistan buyers are also silent on imported ferrous scrap following subdued steel demand and downward pressure on domestic finished steel prices. Bangladesh reopens its economy from the present lockdown on Aug 5.
The weekly Davis Indexes in Portland for export yard scrap fell for #1 HMS by $9/gt to $383/gt delivered, P&S 5ft contracted by $8/gt to $405/gt, and shredder feed declined by $6/gt to $289/gt delivered export yard. Two of the large docks in the region are anticipated to drop prices further by mid-month.
The San Francisco weekly Davis Indexes declined slightly after trending flat in the prior week with #1 HMS declining by $9/g to $385/gt delivered, P&S 5ft dropping by $7/gt to $398/gt delivered, and shredder feed shrinking by $6/gt to $285/gt delivered.
In Los Angeles, the Davis Index declined as prices were officially announced down $10/gt on Monday. Several market participants note the probability of additional discounts on prices in August unless export shows a robust change. The index for #1 HMS and P&S 5ft fell by $12/gt to $341/gt delivered and $350/gt delivered, respectively. Shredder feed dropped for the second week by $12/gt after losing $2/gt last week and is now at $254/gt delivered.