Scrap prices to the US East Coast (USEC) docks were divergent on Tuesday but overall retained their bearish trend seen in the past few weeks. The fire at recycler and exporter EMR’s facility in Camden, New Jersey, has decreased the demand for shredder feed, even though it continues to accept cut grades and non-ferrous material. In New York and Philadelphia, the price of shredder feed to docks decreased by $30/gt this week.
There is no definitive date set for when EMR can resume operating its shredder in Camden. Local authorities gave the company 30 days before reassessing the operating permit that was revoked. In the meantime, the city’s residents have sued the company, alleging that the incidents in the past years have interfered with the use of their homes. They have also called for the facility to be shut down indefinitely. For its part, the company has sued the city of Camden, alleging the shutdown has already cost it $10 million in losses, and warning that layoffs could ensue. Scrap traders in the region estimated the restart date as early as Jul 6, but legal developments could complicate matters further.
HMS I to New York and Philadelphia remains at $270-290/gt delivered at the export yard, with the higher end reserved for larger-volume deals. P&S 5ft is also unchanged at $290-310/gt delivered. The aforementioned shredder feed fell to $220-230/gt from $250-260/gt last week. Boston prices fell for a second week, and again by $5/gt as HMS I settled at $245-250/gt delivered export yard, P&S 5ft at $255-260/gt, and shredder feed at $165/gt.
The export market to Turkey has been uncertain but still bearish. The last set of deals from the EU for HMS I/II 80:20 on Friday were conducted in the $386-390/mt CFR Turkey. There was another sale on Tuesday from St. Petersburg conducted at $387/mt CFR Turkey. In the USEC, there were several rumors in the market, with some USEC participants estimating the equivalent US price for HMS I/II 80:20 at $402-404/mt CFR Turkey. Yet, Turkish contacts expect a reduced price and deals from USEC to possibly be done at $395-397/mt CFR Turkey for US material. Moreover, some contacts reported deals conducted last week at the $400-401/mt CFR level. Still, nothing was confirmed.
According to contacts in Turkey, the market could remain stagnant when it comes to the finished steel market in the short term and possibly for the rest of the year. Turkish mills are expecting higher energy costs in the coming months as the government has provided an indication of higher levels. Yet, a possible resolution to the US-Israel-Iran war, as expressed by US President Donald Trump, could ameliorate this situation. Interest rates and political uncertainty in Turkey have made stakeholders in the manufacturing and construction sectors cautious.
Containerized scrap
Contacts at USEC reported that containerized scrap prices remained unchanged this week. The price of containerized HMS I/II 80:20 remains at $325-330/mt FAS NY port, containerized shredded at $350-360/mt FAS NY port.
