Containerized ferrous scrap prices to the US West Coast (USWC) docks continued to climb this week as the price of HMS I/II 80:20 moved up to $335-340/mt FAS Los Angeles (LA) port from $325-335/mt FAS port last week. Containerized #1 busheling prices rose to $365-370/mt FAS LA port from $355-365/mt FAS port last week, while shredded increased to $355-360/mt FAS from $345-355/mt FAS port during the same period.
San Francisco Bay Area containerized scrap prices moved accordingly, and HMS I/II 80:20 settled at $330-335/mt FAS Oakland port from $320-330/mt FAS last week. #1 busheling prices inched up to $360-355/mt FAS port from $350-360/mt FAS last week, and shredded moved to $350-355/mt FAS from $340-350/mt FAS during the same period.
Scrap sellers to the USWC docks are finding it difficult to keep up with the weekly increases, though, as their own providers insist on higher selling prices or threaten to withhold volumes. This week, some sellers at the docks were reporting difficulties obtaining volumes for HMS I.
USWC bulk prices remained unchanged this week at $280/gt ($284.5/mt) delivered LA port, P&S flat at $300/gt ($304.8/mt) delivered, and shredder feed at $220/gt ($223.5/mt) delivered. Houston bulk prices to docks were unchanged this week, too, as HMS I settled at $320/gt ($325.1/mt) delivered to export yard, and P&S 5ft sits at $340/gt ($345.4/mt) delivered. Shredded to Houston docks is flat at $350/gt ($355.6/mt) delivered.
Moreover, the LA and Bay Area have peculiar market dynamics that tend to put more pressure on sellers at the docks. Many contracts are bound to published indexes, which often reflect scale prices or the lowest published prices from exporters. USWC contacts report several price tiers above these low prices, including urgent sales that can fetch $20-30/gt above the usual scrap dealers' prices when exporters need tonnage to fill a shipping vessel.
Asia imports
The brisk import activity in Asia has spurred the increases seen in the USWC containers market and a relative stability in the bulk market. India has been an exception, with a little softness observed this week, as reported by SteelOrbis, as prices from UK/EU for containerized shredded fell to $400-405/mt CFR Nhava Sheva from $400-412/mt CFR in the previous week due to a weak domestic long products market.
Nevertheless, Taiwanese and other S. East Asian import prices have continued to rise. Deals from the US of HMS I/II 80:20 improved last week to $353-354/mt CFR Taiwan from $347-349/mt CFR the week before that, as increased energy and freight prices keep driving up the price of scrap in that region.
