US containerized ferrous scrap indexes increased on the West Coast for the second consecutive week while East coast prices trended mostly soft to sideways.
Containerized activity alongside the East Coast continues to remain active but without a marked increase in scrap demand. Sellers report mostly unchanged prices and are shaving off a few dollars possibly to close deals as Bangladesh and Pakistan buyers slowed down their inquiries due to an upcoming holiday.
Last week, shredded scrap offers were trending slightly lower against P&S 5ft, but several sellers report the grades are being quoted at the same levels for some buyers.
The weekly Davis Index in New York for #1 busheling decreased by $2/mt to $253/mt fas and declined for HMS 1&2 (80:20) by $2/mt to $232/mt fas. The Davis Index for P&S 5ft held at $247/mt fas but increased for shredded by $2/mt to $248/mt fas. The index for machine shop turnings decreased by $9/mt to $202/mt fas as some interest for the grade waned.
The West Coast continued benefiting from tighter scrap supply in the region and active material buys from Asian countries such as Taiwan, Vietnam, and India on expectations of increased steel imports to China as it recovers. Additionally, countries such as Indonesia foresee an increase in steel usage on the return of infrastructure projects.
Higher imports of Japanese finished steel products remain a strong concern in Korea and mills are seeking to address the dumping with the commerce department. South Korean mills are resisting higher domestic and import scrap offers on challenging finished steel forecasts.
Increasing Japanese scrap export offers along with Turkey’s higher import scrap prices are supporting higher export scrap prices in the US, Australia, and Russia. Moreover, domestic ferrous scrap sources are drying up in countries ramping up production resulting in higher domestic prices.
The weekly Davis Indexes in Los Angeles for #1 busheling held at $239/mt fas after an increase by $12/mt last week. The index for HMS 1&2 (80:20) rose by $4/mt to $222/mt fas alongside the index for P&S 5ft, which increased by $5/mt to $238/mt fas. Shredded also increased by $5/mt to $238/mt fas.
The Davis Indexes in San Francisco followed Los Angeles with increases on most grades. #1 busheling increased by $5/mt to $238/mt fas, while HMS 1&2 (80:20) rose by $3/mt to $218/mt. The index for P&S 5ft increased by $5/mt to $234/mt fas and ticked up for shredded by $5/mt to $229/mt fas.
In Seattle, the weekly Davis Indexes also increased all grades with #1 busheling moving up by $3/mt to $238/mt fas, and HMS 1&2 (80:20) rising by $3/mt to $222/mt. The indices for both P&S 5ft and shredded ticked up by $5/mt to $238/mt fas.