US containerized scrap prices inched up this week after four consecutive weeks of declines.
The weekly Davis Indexes in New York rose by $1-6/mt after declining by $11-20/mt fas last week. The index for #1 busheling and HMS 1&2 (80:20) climbed by $2/mt to $398/mt fas and $361/mt fas, respectively. P&S 5ft and shredded both increased by $1/mt to $385/mt fas and $383/mt fas, respectively. Machine shop turnings rose by $6/mt this week after declining by $23/mt last week to $328/mt fas.
In Los Angeles, the weekly Davis Indexes increased by $7-15/mt this week after falling $23-33/mt last week. The index for #1 busheling climbed by $7/mt to $361/mt fas, HMS 1&2 (80:20) rose by $8/mt to $329/mt fas, P&S 5ft increased $12/mt to $351/mt fas and shredded climbed by $10/mt to $352/mt fas.
Some West Coast dealers decreased prices down to $310-325/mt fas last week while others preferred to withdraw from actively offering on low bids after being influenced by uncertainty and concern over excess inventories.
As Asian markets have begun showing strength through stronger domestic scrap prices, and higher finished steel demand and pricing, along with higher Japanese export scrap offers, the offers and resulting deals from the US have firmed up.
In San Francisco, the weekly indexes climbed by $9/mt to $359/mt fas for #1 busheling and by $15/mt to $325/mt fas for HMS 1&2 (80:20). P&S 5ft and shredded rose in tandem by $12/mt to $345/mt fas, gaining almost half of last week’s $25/mt decline.
The Davis Indexes in Seattle recuperated some of the $17-22/mt price drops from last week with gains of $10-15/mt this week. The index for #1 busheling and shredded rose by $12/mt to $365/mt fas and $350/mt fas, respectively. The index for HMS 1&2 (80:20) gained by $10/mt to $328/mt fas as P&S 5ft increased by $15/mt to $350/mt fas.
The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased to $409.86/mt cfr on Thursday compared to $397.50/mt last week and $415.89/mt cfr the prior week. Compared to a week ago, the Turkish index increased by $12.36/mt and is approaching the previous two-week higher level.
Both sellers and buyers agree that prices are regaining ground and are likely to continue climbing through the rest of February. Positive information is expected from China and the Asian markets after the Lunar New Year holiday. Turkey, with tight scrap inventories worldwide, is encountering higher import scrap prices given the positive expectation.