Containerized scrap prices at the US West Coast (USWC) continued to fall for a seventh consecutive week as HMS I/II 80:20 dropped by $5-10/mt to $305/mt FAS Long Beach port from $310-315/mt FAS last week. Sources have mentioned that they envision the price reaching $300/mt FAS by the end of the month and that $295/mt FAS could be the market bottom, as suppliers would be expected to draw the line and not issue offers below that level. Some offers at $310/mt FAS for the grade were not accepted.
Containerized P&S 5ft prices fell by $5-10/mt to $320-235/mt FAS, and shredded fell by the same margin to $325-330/mt FAS.
The price of West Texas Intermediate crude oil grew to $77-81 per barrel from $71 per barrel after the US-Israel-Iran war has seen complications in achieving a long-term agreement between all parties. This is expected to increase fuel costs globally again, and some USWC contacts believe that if the crude prices remain at the latest levels, ocean freight costs could increase by 5-7 percent in the next few days.
Bulk
Bulk scrap ferrous scrap prices to USWC docks did not fall this week after it was announced by exporters last week that a $10-20/gt price drop would be implemented. Yet it has been noted that announcements often lag in implementation. Nevertheless, both exporters and providers believe that the market remains bearish and that there will be another $10/gt drop in bulk prices very soon.
In the meantime, the price of HMS I remains at $240-250/gt delivered Los Angeles export yard, P&S 5ft at $270/gt delivered, and $190-200/gt delivered. San Francisco Bay Area prices were also unchanged, with HMS I at $250/gt delivered, P&S 5ft at $260/gt delivered, and shredder feed at $200/gt delivered.
Last week, it was reported that Vietnamese and Taiwanese steel markets were still soft due to low rebar demand and prices. This week, the uncertainty surrounding the conflict in the Middle East has added to the bearishness of some Asian import markets. Such as in India, where SteelOrbis reports that buyers are being cautious after more tension in the Gulf of Hormuz has emerged. Containerized shredded prices to the port of Nhava Sheva fell by $10/mt weekly. European sellers are out of the market to India in light of incoming higher ocean freight rates.
Houston bulk scrap prices to docks finally decreased this week, at least for cut grades, after remaining unchanged for five weeks while both USWC and US East Coast (USEC) dock prices fell in that period. The price of HMS I fell by $20-25/gt to $320/gt delivered Houston export yard, P&S 5ft dropped by $10-20/gt to $340/gt delivered, yet shredder feed remained unchanged at $320/gt delivered.
