Bulk scrap prices to the US East Coast (USEC) docks fell across the board this week, marking the fourth straight week for the New York and Philadelphia docks. In Boston, cut grades to the docks remained unchanged this week as shredder feed prices softened due to the last few sellers of the grade that were resisting lower prices finally accepting lower bids, according to contacts in the region.
Participants in USEC believe the market bottom could be very close, as they think the next significant threshold for US-origin HMS I/II 80:20 is $350/mt CFR Turkey, and the current price sits significantly above at $370-373/mt CFR Turkey. At the same time, they think exporters will be resistant to lower Turkish bids as fuel costs rise. The price of West Texas Intermediate (WTI) crude jumped to $78-81 per barrel from $71 on Friday, even though there has not been confirmation that USEC freight has moved up from $44-46/mt CFR Turkey. Yet traders in USEC believe exporters will fall into another margin protection mode and that lower export prices are unlikely, or at least will be resisted with vigor.
In the meantime, the price of HMS I to New York docks fell by $5/gt on the lower end to $250-260/gt delivered export yard while P&S 5ft fell by $10-15/gt to $260-270/gt delivered and shredder feed fell by $10/gt to $200-205/gt delivered. New York and Philadelphia prices for the export market due to local availability, with HMS I falling by $10/gt in Philadelphia to $245-250/gt delivered export yard, P&S 5ft fell by the same margin to $265-270/gt delivered, yet shredder feed remained unchanged at $210-215/gt delivered.
Scrap generation in USEC is expected to be impacted in the following days, contacts commented, as higher temperatures and the vacation season restrict flows slightly. This is another factor they envision could slow down the downward trend.
Regarding demand for shredder feed, the shredder that was suspended in the region restarted operations on Tuesday after Camden, New Jersey’s City Council voted last week to reject a proposal made by EMR. The following day, a judge ruled in favor of reestablishing the shredder’s operations contingent on some safety measures. Local media reports this Tuesday confirmed that the shredder had restarted operations. Yet no surge in shredder feed prices has been reported.
Boston bulk scrap prices stayed unchanged on Wednesday for cut grades, with HMS I unchanged at $250/gt delivered export yard, P&S 5ft at $20/gt delivered, yet shredder feed fell by $5/gt to $150-155/gt delivered.
Containerized
Containerized scrap prices in USEC, nevertheless, remained unchanged this week. The price of HMS I/II 80:20 stayed at $310/mt FAS New York (NY) port, P&S 5ft stayed at $320/mt FAS, and shredder at $340/mt FAS.
