US West Coast dock prices trended unchanged on the West Coast on Tuesday, mirroring the East Coast’s rangebound activity.
The daily Davis Index for US-origin HMS 1&2 (80:20) fell by $5.98 to $497.50/mt cfr Turkey on Tuesday compared to Jun 15. Several market participants are concerned that Turkish import prices may decline but are hopeful that the recent increase in Turkish domestic scrap prices and a strong US domestic scrap market may buoy export sentiment. The US July ferrous trading week has some expecting an increase of $20-30/gt on June settled prices while others, concerned about the export effect, are anticipating a sideways move.
Iron ore prices remain firm, supporting ferrous scrap prices, despite declining to $206.50/mt cfr China from over $220/mt cfr early last week.
Bulk scrap buys from Asian buyers are expected to remain strong on tight global inventories. South Korean and Vietnamese buyers have increased bids for Japanese scrap amid firm domestic scrap prices in Japan over the past week. Domestic scrap prices have also risen in Malaysia, South Korea, Thailand, and Vietnam, which supports the firm import scrap offers on buying needs.
The weekly Davis Indexes in Portland for export yard scrap remained unchanged with #1 HMS at $381/mt delivered, P&S 5ft at $404/gt delivered, and shredder feed at $277/gt delivered export yard.
In San Francisco, the Davis Indexes were flat with #1 HMS at $360/gt delivered, P&S 5ft at $369/gt delivered, and shredder feed at $254/gt delivered.
The Los Angeles dock prices also remained unchanged this week with #1 HMS at $341/gt delivered, P&S 5ft at $351/gt delivered, and shredder feed at $251/gt delivered.
The container market in LA continues to be quoted at around $400-405/mt fas for HMS 1&2 (80:20) with some noting the slight downward pressure by buyers while others see the possibility of an increase of $5-10/mt may be possible in containers as July trading consumes scrap inventories.