Prices for containerized ferrous scrap on the US West Coast (USWC) have remained stable this week due to solid demand from the Asian markets. The price of containerized HMS I/II 80:20 to Los Angeles (LA) docks remains unchanged at $325-330/mt FAS port. A minority of contacts reported prices slightly lower at $320-325/mt FAS LA port.
Yet contacts in the region have said they expect major exporters in the USWC to drop prices for containerized ferrous scrap starting in April due to higher freight costs to Asia. Sellers who have tried to increase containerized prices to docks have met resistance from buyers.
A common theme among participants in this market is that uncertainty about higher fuel and freight costs stemming from the conflict in Iran, which began in February, has made trading more challenging. Contacts note that containerized trading is more susceptible to freight cost fluctuations than bulk. They report that some large container shipping companies are showing previous freight costs, while some are up $500/mt per container, creating confusion.
Regarding bulk ferrous scrap prices, USWC exporters announced earlier this week that they had reduced dock prices by $10/gt ($10.16/mt). In Los Angeles, the price of HMS I contracted to $280/gt ($284.5/mt) delivered export yard from $290/gt ($294.6/mt) delivered. P&S 5ft settled at $300/gt ($304.8/mt) delivered, and shredder feed at $220/gt ($223.5/mt) delivered.
Participants in the ferrous bulk trade do not expect further drops in April, as they report that the export market to Asia remains brisk and that they are receiving a steady stream of bids from USWC exporters. Some venture to think there might be a slight increase in bulk cut grades in April, while shredder feed could remain sideways.
As SteelOrbis reported previously, Pakistani import prices for shredded rose by $6-10/mt this week in regard to deals from the UK, settling at $418/mt CFR Qasim compared to concluded deals at $408-412/mt CFR last week. Another deal ex-EU has also been confirmed for 1,000 mt of shredded at $419/mt CFR Qasim.
Meanwhile, the prices for containerized ferrous scrap on the US East Coast (USEC) remained unchanged this week as well with the price of HMS I/II (80:20) reported at $325/mt FAS New York (NY) port, P&S 5ft at $345/mt FAS NY port, #1 busheling at $355/mt FAS NY port and shredded at $345-350/mt FAS NY port.
