Prices for ferrous scrap to the US East Coast (USEC) docks remained unchanged this week for HMS I at $280-290/gt ($284.4-294.6/mt) delivered export yard in New York and Philadelphia. Yet shredder feed to exporters in the same region rose to $265-275/gt ($269.2-279.4/mt) delivered this week from the previous week’s $260-265/gt ($264.1-269.2/mt) delivered. It has been a constant across the USEC, the Midwest, and even Canada that there is currently a tight supply of shredder feed, as shredders selling to the domestic market are also looking for material.
USEC dock prices are not expected to decline soon, as the spread relative to the domestic market is significant. The price of HMS I for the domestic market in the Philadelphia region sits at $350/gt ($355.6/mt) delivered, even after the $20/gt ($20.3/mt) price drop in April. Further out west, starting with Pittsburgh, sellers begin to see better prices; the price of the same grade in the Pittsburgh market is projected at $380/gt ($386.1/mt) delivered, following the $20/gt ($20.3/mt) contraction in April.
Sellers to the docks report that they are not receiving many bids for HMS I and are mainly looking to sell to the domestic market. The export market to Turkey has remained somewhat dormant but is expected to pick up soon, as Turkish mills reportedly need 20 cargoes for May. The US-Israel-Iran war has provided uncertainty that has stalled the market. Turkish mills are looking to absorb an approximately 25 percent hike in energy costs for next month, contracting their margins and being very careful with increasing their raw material costs. The price of US-origin HMS I/II 80:20 has remained stable at $400/mt CFR Turkey.
Also, freight costs seem to be a constant source of apprehension, as oil prices surge due to disruptions to oil tankers using the Strait of Hormuz. Yet the latest levels for bulk freight from USEC have remained at $44–46/mt cfr Turkey, despite reports of it surpassing the $50/mt cfr Turkey threshold last week.
The US domestic market could be primed to exert more competitive pressure on dock prices, though. This week, the American Iron and Steel Institute reported a 79.8pc installed utilization capacity rate for the US steel sector, a smidge away from the historically good level of 80pc (not seen since August 2024). Moreover, the price of hot-rolled coil (HRC) has been stable at the $1,040/nt ($1,146/mt) FOB mill, and the price of plate increased by $120/nt ($132.2/mt) between Mar 6 and the start of the April trading cycle.
