Ferrous bulk scrap buyers at the docks in California dropped their prices by $15/gt this week due to higher ocean freight costs for bulk. In Southern California, HMS I dropped to $260-270/gt delivered Los Angeles (LA) export yard as P&S 5ft dropped by the same amount to $275/gt delivered. Shredder feed remained unchanged at $215-225/gt delivered. The buyers also reported that soft Asian demand for HMS I/II 80:20 is affecting prices at USWC docks.
Some sellers are wary that the fundamentals behind the price drops may be inaccurate, especially in the Asian scrap import market. It should be noted, though, that some sellers conceded that they heard this week that a couple of prominent mills in Taiwan would be out of the scrap import market until June.
Nevertheless, SteelOrbis has reported that Taiwanese import prices, the last reported prices, were stable, even rising slightly to $362-374/mt CFR from $362-373/mt CFR in the week prior. It should be noted that Japanese scrap suppliers have been out of the market for the past 4 weeks. Vietnam import prices, the last that have been reported, have also remained stable, increasing slightly on the higher end to $400-405/mt CFR for US-origin HMS I/II 80:20 but sources point out that Vietnam’s mills’ steel-scrap spread is tight right now, and buyers could be cautious in the immediate future.
Sellers are attentive to whether scrap prices to the USWC could see a correction in the coming weeks, but they are also aware that exporters usually dictate market levels.
Bulk scrap prices to the docks in the San Francisco Bay Area also dropped by the same amount, to $255-265/gt delivered export yard for HMS I, P&S 5ft settled at $270/gt delivered, also $15/gt lower than the previous week. Shredder feed to the Bay Area docks was also unchanged at $210-220/gt delivered. In the Pacific Northwest, bulk prices were reported as unchanged from the previous week, with HMS I at $290/gt delivered export yard, P&S 5ft at $308/gt delivered, and shredder feed at $215-225/gt delivered.
Contacts in Houston reported some price corrections following last week's increases. Healthy scrap flows were reported as the reason for the correction. In the case of HMS I, the price dropped by $5/gt to $335/gt delivered to the export yard; the price of P&S 5ft lowered by $10/gt to $350/gt delivered; and shredder feed remained unchanged at $310-320/gt delivered. These were the last quotes provided by buyers this week.
Containerized scrap
Prices for containerized scrap remained unchanged in the USWC this week, with the price of HMS I/II 80:20 in LA at $352/mt FAS Long Beach port, no contact was able to confirm a single deal at the higher end of $355/mt FAS Long Beach port heard last week. Shredded is reported at $370-380/mt FAS port while #1 busheling at $375-380/mt FAS port. Contacts in Southern California say that most busheling and P&S ft is going to the domestic market, yet they do envision the grades going back into the export market, which would expand their business possibilities. San Francisco Bay Area containerized prices are $5/mt below LA prices.
In USEC, on the other hand, containerized scrap prices have softened for a second consecutive week. The price of HMS I/II 80:20 went down by $5/mt to $330-335/mt FAS New York port, shredded was reported at $355/mt FAS port from $355-360/mt FAS the week before, while #1 busheling was estimated at $360/mt FAS. Contacts mentioned that #1 busheling right now is being sold via rail to mills in other markets outside of USEC, yet it remains to be seen if this is a temporary trend, and if the grade could come back to the export market.
