Export ferrous scrap prices declined across all grades on the US West and East Coast this week. Exporters continue facing higher freight rates, limited container availability and buying interest, and market uncertainty resulting from COVID-19-related actions and outlooks.
India’s lockdown along with fewer purchases from Bangladesh and Pakistan are dampening container prices on the East Coast. Exporters are finding it uneconomical to collect material because of the downward pressure on ferrous scrap export prices.
Some exporters expect prices to increase by mid- to end-April on improvement in demand after the end of COVID-19-related lockdown periods and amid limited export supplies, and various stimulus packages. However, some market participants are concerned it may take more than a few months for ferrous scrap to regain pricing and expect the year to be one to “write off in scrap.”
The weekly Davis Index in New York decreased by $10/mt for #1busheling to $224/mt fas. The index for HMS 1&2 (80:20) decreased by $13/mt to $198/mt, machine turnings fell by $10/mt to $165/mt fas, P&S 5ft declined by $18/mt to $210/mt fas, and shredded decreased by $17/mt to $208/mt fas.
Davis Index confirmed East Coast transactions from the end of last week to this week at $220/mt fas on shredded scrap. As prices slipped since Monday, sellers are hoping for transactions closer to $210/mt fas on shredded, but the few bids coming in are even lower in the $180-190/mt fas range. Transactions near the bid levels were not reported from the East Coast as they were assessed to be too low.
Declining prices on regional billet, an alternative to scrap, along with lower prices on Japanese scrap continue placing downward price pressure on US West Coast scrap prices.
The weekly Davis Index in Los Angeles decreased by $13/mt for #1busheling to $195/mt fas, while the index for HMS 1&2 (80:20) fell by $15/mt to $171/mt fas, P&S 5ft declined by $16/mt to $191/mt fas, and shredded dropped by $19/mt to $191/mt fas.
In San Francisco, the index decreased by $11/mt for #1busheling to $208/mt fas, and fell by $26/mt to $175/mt for HMS 1&2 (80:20). The Davis Index for P&S 5ft declined by $15/mt to $200/mt fas, and decreased by $15/mt to $200/mt fas for shredded.
The Davis Index in Seattle decreased by $9/mt for #1busheling to $197/mt fas and by $7/mt to $168/mt for HMS 1&2 (80:20). The index for P&S 5ft declined by $17/mt to $183/mt fas, and shredded decreased by $21/mt to $200/mt fas.