US containerized ferrous scrap indexes increased on the West Coast for the fourth consecutive week. Containerized scrap on the East Coast rebounded by $8-13/mt last week after a few flat weeks and increased by another $6-8/mt this week as export activity increased. Both coasts are trending up in tandem for the second consecutive week. 

 

Buyers report increased offer prices on both coasts and bids being rejected in anticipation of rising containerized prices. On the East Coast, prices on shredded have increased to $270-275/mt fas in the past few days, with a bid for $270/mt fas rejected towards the end of week. In Los Angeles, sellers were rejecting bids of $235/mt fas on Thursday. 

 

The weekly Davis Index in New York for #1 busheling increased by $6/mt to $269/mt fas while HMS 1&2 (80:20) rose by $7/mt to $247/mt fas. The index for P&S 5ft went up by $7/mt to $267/mt fas and surged for shredded by $8/mt to $267/mt fas. The index for machine shop turnings increased by $6/mt to $209/mt fas.

 

Pakistani and Bangladeshi buyers resumed inquiries to compete for inventories along with Indian, Vietnamese, and Taiwanese buyers. A large Taiwan mill stopped purchasing by mid-week as it will shut down briefly for maintenance. Buyers were motivated to purchase this week to avoid higher prices next week. Moreover, more inquiries from Pakistan are expected in the coming week which will place further pressure on inventories and increase prices. 

 

The expectation of infrastructure investments is supporting higher scrap buying prices from Asian buyers. 

 

Japanese scrap export offers along with stronger import scrap prices in Turkey continue supporting higher offers from other scrap sources and the US for both bulk and containers. 

 

The upward or at least sustainable export activity is expected to support containerized prices through August. 

 

The weekly Davis Index in Los Angeles for #1 busheling increased by $12/mt to $255/mt fas. The index for HMS 1&2 (80:20) rose by $6/mt to $235/mt fas and P&S 5ft and shredded both went up by $10/mt to $252/mt fas each. P&S 5ft and shredded scrap continue maintaining equal pricing levels now for the fourth week increase.

 

The Davis Indexes in San Francisco increased across all grades. #1 busheling increased by $5/mt to $243/mt fas while HMS 1&2 (80:20) rose by $6/mt to $229/mt. The indexes for P&S 5ft and shredded went up by $5/mt to $240/mt fas and $240/mt fas, respectively.

 

The weekly Davis Indexes in Seattle inched up as well on regional activity. The #1 busheling index increased by $5/mt to $243/mt fas while HMS 1&2 (80:20) increased by $3/mt to $226/mt fas. 

 

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