US West Coast dock buying prices for ferrous scrap were flat with downward pressure on Tuesday.
Market participants said the market continues slumping with HMS 1&2 (80:20) from Los Angeles trending at $185-195/mt fas, and for the Taiwan market with HMS 1&2 (80:20) at $215/mt cfr Taiwan. Overall, export prices have declined $45-55/mt compared to $240/mt fas on HMS 1&2 (80:20) in mid-January.
The lower Turkish scrap import deals for US-origin HMS 1&2 (80:20) at $260/mt cfr and for UK origin HMS 1&2 (80:20) at $255/mt cfr dampened the market this week, but market participants are optimistic about an upward trend on tight scrap supplies given the given the higher US-origin deal for the grade at $264/mt cfr.
US scrap suppliers have refrained from actively offering price objectives of $270/mt cfr on standard grade to Turkey as the price trend is unclear though domestic demand in Turkey for rebar and billet is showing strength.
In both Houston and Baltimore, market participants said sellers’ offers increased by $5-10/mt on fas on shredded and P&S 5ft grades. A source in Houston said it seemed as if both domestic buyers and docks showed more interest in scrap this week, which could place March domestic trading sideways in a worst-case scenario.
In Los Angeles, the Davis Indexes for dock prices declined with HMS 1&2 (80:20) down by $1/gt to $162/gt, P&S 5ft flat at $174/gt, and shredder feed down $7/gt to $112/gt.
The Davis Indexes for Portland dock buying prices decreased, with HMS 1&2 (80:20) down by $3/gt to $227/gt, P&S 5ft down by $4/gt to $237/gt, and shredder feed down by $4/gt to $142/gt.
The Davis Indexes for San Francisco dock buying prices decreased, with HMS 1&2 (80:20) decreasing by $15/gt to $190/gt, P&S 5ft decreasing by $17/gt to $199/gt, and shredder feed decreasing by $10/gt to $116/gt.
Houston indexes are being realigned to the following Davis Indexes: HMS 1&2 (80:20) at $220/gt, P&S at $245/gt, and shredder feed to $140/gt. Dock prices are reported flat for the past two weeks.