Prices at the US East Coast (USEC) docks remained unchanged this week for both bulk and containerized scrap prices. The markets remained unchanged as participants waited to see how the domestic market settled, yet they are aware that sentiment in the export market to Turkey remains bearish. Moreover, the recent incident at EMR in Camden, New Jersey, has decreased the demand for shredder feed.
As reported by SteelOrbis, the local authorities suspended EMR’s operational license for its shredder. The suspension will be re-evaluated in 30 days, and contacts in USEC commented that the earliest their shredder could resume operations could be on Jul 6. Yet there have been recurring incidents involving fires at the Camden site; it remains to be seen if they could resume operations after just a brief suspension. Contacts in the area report the facility is still receiving cut grades and non-ferrous material for recycling, while some have added that they believe authorities will limit the type of materials they can receive and store at the site.
Stakeholders at the docks agree, for the time being, that the incident is not affecting offer levels to Turkey, given that the site is still receiving cut grades.
In the meantime, the price of HMS I to New York and Philadelphia docks remains at $270-290/gt delivered export yard, with the higher prices reserved for deals involving large volumes, while the price of P&S 5ft was flat at $290-310/gt delivered. The price of shredder feed trended sideways at $250-260/gt delivered.
Prices to the Boston docks decreased slightly this week. After staying static in the past two weeks, prices in New York and Philadelphia contracted. The price of HMS I to the docks fell by $5/gt to $250/gt delivered, while P&S 5ft fell by $12/gt to $260/gt delivered. Shredder feed prices dropped by $5/gt to $170/gt delivered.
Sentiment in the export market to Turkey remains subdued as the country may be reevaluating its steel production schedule. Higher energy costs, currency fluctuations, and lower domestic finished steel prices have tempered Turkish scrap imports. Turkish rebar workable levels fell by $5-10/mt weekly and settled at $585-600/mt ex-works in the Marmara and Izmir regions, two of the largest producing regions of rebar in the country. Some stakeholders in Turkey believe it could be a bearish rest of the year for the Turkish steel sector.
Containerized scrap
Prices for containerized scrap in USEC also remained unchanged this week despite a slowing down of the export market. Taiwanese scrap demand has slowed down due to sluggish rebar sales, which has made mills cautious in their scrap purchases. Moreover, the upcoming rainy season and a massive shift of funds into the stock market have added to the cautiousness displayed by Taiwanese mills.
The price of containerized HMS I/II 80:20 remains at $325-330/mt FAS NY port, containerized shredded at $350-360/mt FAS NY port. Other contacts in other regions report that those are also the same prices seen for containerized scrap in FAS Savannah, Georgia port and FAS Miami port.
