Containerized ferrous scrap prices in the US West Coast (USWC) continued to drop this week amid a tepid Asian import scrap market. Containerized scrap on the USWC has seen a few consecutive weeks with $5/mt price contractions. As import prices into Asia and containerized ocean freight rates remain high, exporters continue to protect their margins. In Los Angeles, the price of HMS I/II 80:20 fell by $5/mt to $335/mt FAS Long Beach port, containerized P&S 5ft decreased by the same amount to $350-355/mt FAS, and containerized shredded also fell the same to $355-360/mt FAS.
Taiwanese importers remain cautious with purchases due to a soft market for Taiwanese rebar. Japanese offers for containerized scrap to Taiwan have also fell, more so than US offers. Taiwanese import prices of US-origin HMS I/II 80:20 fell by $4-5/mt this week to $358-361/mt. The Taiwanese rebar market has been sluggish due to the upcoming rainy season in the country and large amounts of funds going to the stock market, as reported by SteelOrbis.
San Francisco Bay Area prices fell accordingly. The price of containerized HMS I/II 80:20 decreased by $5/mt to $330/mt FAS Oakland port, P&S 5ft contracted by the same amount to $345-350/mt FAS, and shredded fell by the same to $350-355/mt FAS.
Bulk scrap
Prices for bulk scrap in the USWC remained unchanged another week after dropping by $25/gt, in total, during the weeks of May 18 and May 25. Contacts mention that prices could resume their downward trend as bulk ocean freight rates also remain high and E. Asian demand for bulk scrap keeps decreasing. Domestic prices along the US Western region settled this week unchanged from May settled prices, which has helped provide some stability to the market.
In Los Angeles, HMS I remained unchanged at $250-260/gt delivered export yard while P&S 5ft was unchanged at $270/gt delivered, and shredder feed at $200-210/gt delivered. San Francisco Bay Area prices for bulk scrap stand $5/gt below Los Angeles prices.
The Vietnamese import market, as reported by SteelOrbis, has been soft as construction demand in the country has not recovered to previously expected levels amid a volatile Chinese market.
In the Pacific Northwest, stakeholders report that HMS I remains stable at $290/gt delivered Portland, Oregon-Tacoma, Washington export yards, P&S 5ft decreased by $5/gt to $300/gt delivered, and shredder feed is stable at $225-235/gt delivered.
Contacts in Houston reported a slight increase in bulk scrap prices at the docks, as the domestic market remains stable and exporters seek to compete for tonnages. Prices for HMS I rose by $5-10/gt to $340-345/gt delivered Houston export yard from $335/gt delivered last week, P&S 5ft improved in the higher end of the price range to $350-360/gt delivered from $350/gt delivered last week, while it was the same case for shredder feed, as it moved to $310-330/gt delivered from $310-320/gt delivered last week.
