Ferrous scrap prices to US West Coast (USWC) docks remained unchanged for another week, both in their bulk and containerized varieties. Asian import prices have continued to rise since last week, but recent developments in the US-Israel-Iran war have lowered oil prices, possibly reducing ocean freight rates, one of the strongest factors driving up scrap prices in the USWC export market.
The price of bulk HMS I remained unchanged at $280/gt delivered Los Angeles (LA) export yard, while P&S 5ft stayed at $290/gt delivered, and shredder feed at $215-225/gt delivered. In the San Francisco Bay Area, the price of HMS I trended flat at $275/gt delivered export yard, P&S 5ft stayed at $285/gt delivered, and shredder feed at $210-220/gt delivered.
Regarding the war, Iranian authorities declared that a set of demands from US President Donald Trump resembled a “wish list” and that the conflict was not close to being resolved. President Trump, for his part, said that the war was close to being over, and the markets reacted accordingly, with the price of West Texas Intermediate oil falling by $6.63 per barrel on Wednesday to $95.5 per barrel.
Prices to Houston docks for bulk scrap were also reported unchanged this week, with HMS I at $320/gt delivered export yard, P&S 5ft at $340/gt delivered. Bulk prices to the Pacific Northwest docks were also flat, with $290/gt delivered being paid for HMS I, $308/gt delivered for P&S 5ft, and $215-225/gt delivered for shredder feed, same as in Southern California.
Compared with some sellers on the US East Coast (USEC), sellers to the USWC docks report no benefits from higher export prices passed on to them. And, with a possible deceleration in export prices due to lower freight costs, it may become more difficult to see rises in dock prices. But truth be told, Asian ferrous scrap demand has been robust, and scrap flows have not been generous.
Containerized scrap
Taiwanese bids for US-origin HMS I/II 80:20 increased last week to $363-370/mt CFR from $361-363/mt CFR the week before that. Japanese suppliers have stayed out of the market, making it difficult for some Taiwanese buyers to secure materials. Vietnamese demand for scrap was also reported as solid prior to its late April-early May holidays.
Nevertheless, contacts in USWC report that prices for containerized scrap to the docks remain unchanged. In LA, the price of HMS I/II 80:20 remained unchanged at $340-345/mt FAS Long Beach port, while the price of shredded remained at $360-365/mt FAS port, and for #1 busheling it stayed at $365-370/mt FAS port. Containerized prices in the San Francisco Bay Area also trended sideways, with all levels $5/mt below their Southern Californian counterparts.
In USEC, the same trend held, with containerized HMS I/II 80:20 sideways this week at $335-340/mt FAS NY port and shredded at $355-360/mt FAS port. #1 busheling was unchanged at $360-365/mt FAS port.
