Prices for containerized scrap to the US West Coast (USWC) docks inched up slightly this week, particularly for higher-end deals. A consistent demand for ferrous scrap from Asian countries has enabled this continued growth. The price of containerized HMS I/II 80:20 grew by $5/mt on the higher end and settled at $325-335/mt FAS Long Beach port, there were confirmed sales to support this. Containerized #1 busheling prices sit at $355-365/mt FAS Los Angeles (LA) port, while shredded is at $345-355/mt FAS LA port.
Contacts report that prices in the San Francisco Bay Area are $5/mt below Los Angeles due to the difference in freight rates, and are currently sitting at $320-330/mt FAS Oakland port, with #1 busheling at $350-360/mt and shredded at $340-350/mt FAS port. It should be noted that some contacts believe the Bay Area scrap tends to be higher quality and could therefore fetch the same prices as at Southern California docks.
As previously reported by SteelOrbis, activity in the Asian import bulk scrap market remains brisk. The price of US-origin HMS I/II 80:20 rose by $5/mt in the last week to $395-400/mt CFR Vietnam based on new offers, yet no ex-US deal was confirmed. As previously reported, Pakistani scrap import prices rose last week on a new deal for ex-UK shredded scrap at $418/mt CFR Qasim, up from $408-412/mt CFR the week before.
USWC bulk scrap prices
At the same time, scrap prices for USWC bulk remained unchanged this week with the price of HMS I unchanged at $280/gt ($284.5/mt) delivered LA port, P&S 5ft was also flat at $300/gt ($304.8/mt) and shredder feed at $220/gt ($223.5/mt) delivered. Exporters have been mentioning that freight prices could keep climbing due to the US-Israel-Iran war, in that regard, they mention that they are protecting their margins by not increasing the costs of their inflows.
USEC containerized scrap prices
Containerized ferrous scrap on the USEC remained unchanged despite improving bulk prices. The price of containerized HMS I/II 80:20 is still reported at $325/mt FAS New York port, P&S 5ft at $345/mt FAS port, shredded at $345-350/mt FAS port, and #1 busheling at $355/mt FAS port. Traders in the containerized market said prices could follow bulk and the export market, and rise in the coming days, so long as bullish sentiment in the export market continued.
On that note, there are rumors of a possible pause in exports to Turkey due to the rapidly changing geopolitical situation. Sentiment in Turkish deep sea scrap market has changed rapidly after the announcement of a ceasefire regarding the US-Israel-Iran war, though market players failed to reach an agreement for the future trend of the deep sea scrap quotations. A softening seems largely possible amid the declining oil prices, several mentioned, though none awaits for a significant fall unless a real agreement in the war is reached. The developments in the region will be determinative on prices as they change momentarily.
