Ferrous scrap prices to the US East Coast (USEC) docks fell on Wednesday for both the bulk and containerized varieties, as some prominent exporters in the region decreased their prices by $10 this week as well. The softening comes after the export market to Turkey has remained sluggish for several weeks. Higher bulk freight rates from USEC do not seem to be a factor pushing exporters to protect their margins, as the rate remained at $44-46/mt CFR Turkey this week and has been at that level for several weeks now.
Regarding bulk scrap, prices fell for cut grades. Shredder feed remained unchanged as it had already declined in previous weeks.
The price of HMS I at the New York (NY) and Philadelphia docks fell by $10/gt to $260-270/gt delivered export yard, while P&S 5ft dropped by $280-290/gt delivered. Shredder feed remained unchanged at $220-225/gt delivered. Prices to Boston docks remained unchanged this week after falling in the previous couple of weeks; contacts in that market expect prices to keep falling as soon as next week. In the meantime, the price of HMS I to Boston docks was flat at $245-250/gt delivered, P&S 5ft was unchanged at $255-260/gt delivered, and shredder feed was unchanged at $160-165/gt delivered.
It is rumored that some exporters are projecting a drop in cut grades for the domestic market in USEC during the July trading cycle, particularly for the Philadelphia market, which has allowed them to implement these recent drops. The price of HMS I to Philadelphia docks already lags close to $100/gt compared to its domestic counterpart, with the latter sitting at $350/gt delivered consumer.
Stakeholders in the USEC export market are not surprised by the declines; the Turkish import scrap market has been soft, as has its domestic market. The price of US-origin HMS I/II 80:20 has fallen for four consecutive weeks, projected to be, amid a lack of US-based deals, at $383-384/mt CFR Turkey from $414-415/mt CFR on the week of May 25. Despite Turkish mills looking to replenish their scrap inventories, the latest rumors suggest that the market could keep dropping and that USEC exporters are agreeable to reach a $380-381/mt level for the grade.
Containerized
Containerized ferrous scrap prices fell even more this week as they have been impacted by both the USEC export market and US West Coast (USWC) import trends. The price of HMS I/II 80:20 fell by $15/mt to $310-315/mt FAS NY port and by the same amount for P&S 5ft as it settled at $320-325/mt FAS port. Containerized shredded contracted by $10-15/mt to $340-345/mt FAS port.
The Asian scrap import market has suffered lately due to the rainy season curtailing construction activity, which has impacted rebar consumption. Higher energy costs have also affected Asian scrap consumption.
On Tuesday, some contacts in the USWC have mentioned that bulk scrap prices are expected to drop $10-20/gt this week and the next based on recent announcements sent by exporters. A full report on USWC bulk prices will be published by SteelOrbis on Wednesday.
