Containerized ferrous scrap prices for the export market in the US East Coast (USEC) increased by $10/mt on Tuesday as the export market to Turkey in the region hit bottom and has begun climbing back up. At the same time, bulk scrap prices to the export market remain sideways for cuts, yet have increased in some markets for shredder feed. USEC exporters are reportedly waiting to see if the improved trend in Turkish import prices will be long-sustainable before they make price movements when it comes to their inflows to their export yards.
The Asian import market has not shown clear signs of recovery yet, even though higher ocean freight costs, or the expectation that those costs will increase soon, have kept US exporters firm with their offer levels. In Vietnam, SteelOrbis reported late last week that US scrap offers have been stable as renewed tensions in the US-Israel-Iran war have led to higher crude levels. Lower Japanese scrap prices have caused Asian buyers not to accept US offers (at the $380/mt CFR level) for now, though.
Yet higher Turkish bulk import prices have helped containerized grades in USEC (as opposed to USWC containerized grades, which fell continuously for eight weeks and remained sideways last week). The price of HMS I/II 80:20 improved by $2-3/mt last week as the latest deals from USEC settled at $375-376/mt CFR Turkey late last week. The latest deals from the EU have supported these levels. USEC contacts are still wary if the recovery in prices will be a sustainable upward trend, as the Turkish rebar market is not expected to recover soon and demand is still tepid.
In USEC, the price of containerized HMS I/II 80:20 improved by $10/mt to $320/mt FAS New York port. P&S 5ft improved by the same margin to $330/mt FAS, and shredded also moved up similarly to $350/mt FAS.
Bulk scrap to docks
Ocean bulk freight rates from USEC moved up last week by $5/mt to $50/mt CFR Turkey from $44-46/mt. And, although, they have reportedly stayed static this week, the renewed volatility in the US-Israel-Iran war has some exporters aiming to protect their margins if the freight costs keep going up. The price of crude West Texas Intermediate (WTI) has stayed unchanged from last week, though, at $77-81 per barrel.
In the meantime, the prices for cut grades to the USEC docks have stayed sideways in New York and Philadelphia. HMS I has remained in New York at $250-260/gt delivered export yard and at $245-250/gt delivered in Philadelphia; P&S 5ft has been unchanged at $260-270/gt delivered in New York and $265-270/gt delivered in Philadelphia. Shredder feed in New York is flat at $200-205/gt delivered, yet has gone up to $220-225/gt delivered in Philadelphia, where an exporter who was out of commission for several weeks due to a fire incident has begun buying shredder feed again, pushing up the price.
In Boston, contacts report that the prices to docks remain unchanged. HMS I is still at $230-240/gt delivered export yard and P&S 5ft at $240-250/gt delivered. The price of shredder feed also remains unchanged at $140/gt delivered.
