US East Coast (USEC) ferrous scrap prices to the docks remained unchanged this week, even after some sellers saw their own selling prices increase by $10-15/gt. Still, some of them were integrated into the higher end of the already established price ranges. At New York and Philadelphia docks, the price of HMS I remained in the $280-290/gt delivered export yard; some sellers who had been selling the grade to exporters at $280/gt delivered were now selling at $290/gt delivered this week.
The price of P&S 5ft at the New York and Philadelphia docks is unchanged at $310-320/gt delivered. Shredder feed is also flat at $250-260/gt delivered. Some material was reported on an ex-works basis, with HMS I in the Philadelphia market reported as being picked up at the $275-280/gt range compared to $260-265/gt last week.
Scrap prices in Boston were unchanged this week as well, with the price of HMS I to the docks flat at $255-265/gt delivered, P&S 5ft at $265-275/gt delivered, and shredder feed at $155-165/gt delivered.
Sentiment is positive among sellers, as they see some exporters more open to raising their purchase prices. Some were dismayed that higher export prices to Turkey had not translated into better scrap prices to the docks. For their part, exporters had argued that higher ocean freight costs had offset the higher Turkish scrap import prices. But as gains in export prices have kept pace with increases in freight, it appears exporters have decided to pass some of those benefits on to sellers.
Case in point, this week, the price of US-origin HMS I/II 80:20 grew this week by $2/mt to $412/mt CFR Turkey; while the cost of ocean freight from USEC increased during the same period by $1/mt to $47-50/mt CFR Turkey from $46-49/mt CFR last week.
Exporters could be looking at changes in the domestic scrap market this week as well. Even though there are no increases expected for cut grades in the May trading cycle, they could remain sideways, best-case scenario. In some instances, contacts believe they can drop by $10-20/gt due to increased scrap flows resulting from higher temperatures in Spring. Exporters already are facing competitive prices from domestic mills who are buying HMS I at $350/gt delivered consumer, a $30-40/gt advantage over prices to docks.
As of Tuesday afternoon, no mills in the US had made price announcements. Some participants reported that mills in the southeast could be weighing their options and considering exerting as much downward pressure as possible on grades, given that the southeastern scrap market is not showing as strong demand as the Midwest.
On the Turkish front, finished steel prices are not performing well at the moment. Merchant bar, wire rod, and rebar prices have been softening due to weaker demand and the Turkish Lira's depreciation in recent days.
