The US West Coast (USWC) export market remained stable another week as prices for bulk scrap to the docks remained unchanged while those for containerized scrap inched up even if minimally. Yet participants are apprehensive that Taiwanese purchases of inexpensive billet from Russia over the last weekend could erode USWC prices in the coming weeks.
It could be a challenging position for USWC exporters as they continue to compete with the US domestic market for volumes. Sellers to the USWC docks have commented that not only would they exclude the docks as an option if prices were to drop but actually they would need to see prices increase some $40/gt ($40.6/mt) for them to be motivated to sell to the export market instead of the domestic market.
At the Los Angeles (LA) docks, the price of HMS I remains at $280/gt ($275.5/mt) delivered export yard with P&S 5ft at $290/gt ($286.6/mt) delivered. Shredder feed sits unchanged at $215-225/gt ($209-$220/mt) delivered. Prices in the Bay Area for bulk are slightly below that, with HMS I at $275/gt ($270.6/mt) delivered San Francisco (SF) docks, P&S 5ft at $285/gt ($280.5/mt) and shredder feed at $210-220/gt ($206.6-216.5/mt) delivered Bay Area export yard.
Contacts in the Pacific Northwest mentioned this week that their bulk prices to the docks were also sideways and slightly above dock prices in California. HMS I is reported at $290/gt ($286.6/mt) delivered Portland docks, P&S 5ft at $308/gt ($303/mt) delivered. Shredder feed does appear to be at the same level as in California at $215-225/gt ($209-$220/mt) delivered Portland docks.
The economic uncertainty derived from the US-Israel-Iran war has tempered sentiment for ferrous everywhere. Even though Taiwanese import markets increased prices in both bulk and containerized scrap last week, SteelOrbis reported that sentiment is cautious and importers are focusing only on material they need. Indian scrap prices, as reported on Wednesday, have eroded slightly in the past week.
Containerized scrap
Yet containerized ferrous scrap trading, which is slightly more susceptible to the ebbs and flows of the costs of freight, increased marginally from last week. LA containerized prices for HMS I/II 80:20 increased to $340-345/mt FAS port this week from $335-340/mt FAS last week, containerized #1 busheling rose by the same margin to $370-375/mt FAS while shredded did the same to $360-365/mt FAS port. San Francisco Bay Area containerized scrap prices, as is similar with bulk, stand slightly lower, at $335-340/mt FAS Oakland port for HMS I, $365-370/mt FAS for #1 busheling, and $355-360/mt FAS Oakland port for shredded.
