Prices for the export market on the US West Coast (USWC) remained solid this week. Bulk prices to the docks were flat for the sixth consecutive week, and there have been no reports of price decreases that were announced three weeks ago by exporters having been implemented. Initially, the scrap-to-docks price reduction was delayed as exporters waited for more clarity on higher energy and fuel costs amid escalating volatility in the US-Israel-Iran war.
Regarding the macroeconomic environment, the price of crude West Texas Intermediate (WTI) has actually dropped in the past few days. It had spiked to $77-81 per barrel a couple of weeks ago and now sits closer to $75 per barrel. Regarding the conflict, negotiations are still ongoing, but again there is sentiment that a resolution between all parties involved could be reached soon. The agreement aims to restore the ceasefire that was agreed on Jun 17.
In the meantime, while again there seems to be a short path towards stability, USWC exporters are keeping their prices stable. There had been mention among USWC participants that exporters cannot lower their prices suddenly and need to be careful in this uncertain market so that they can fill their orders appropriately.
The price of HMS I remains at $240-250/gt delivered Los Angeles export yard, P&S 5ft at $270/gt delivered, and shredder feed at $190-200/gt delivered. In the San Francisco Bay Area, prices remained at $250/gt delivered export yard, P&S 5ft at $260/gt delivered, and shredder feed at $200/gt delivered.
In Houston, where prices to docks move more slowly and dropped significantly one month ago, they are again unchanged for a third straight week. HMS I remains at $320/gt delivered export yard, P&S 5ft at $345/gt delivered, and shredder feed at $320/gt delivered. Exporters in Houston remain competitive as mills in the region look for tonnages too for August. Even though mills issuing price announcements in the South and Southeast on Wednesday were seen trying to leave prime grades sideways while lowering shredded and machine shop turnings (MST) by $10/gt, in some instances HMS I by $20/gt.
Containerized scrap
Even though Asian steel and scrap markets have not entered a full upward trend, there have been recent signs of at least some areas hitting a market bottom. In Vietnam, SteelOrbis reported that there are slightly higher high-rolled coil (HRC) import and domestic prices this week, and that they have surpassed expectations even after discounts. Some sources in Vietnam commented that it is just a natural bounce back, as prices were dropping too vigorously.
This has allowed the prepared scrap market to recover slightly. Late last week, there were reports of containerized HMS I/II 80:20 being sold at $318/mt FAS Long Beach port, up from $310/mt FAS. This week, some reported seeing it up at $315/mt FAS but not quite up to $318/mt, hence the price is considered at $315-318/mt FAS port. P&S 5ft rose by $5/mt to $330/mt FAS port and shredded increased by the same measure to $335/mt FAS.
