Bulk scrap prices to the US West Coast (USWC) docks fell by $10/gt in California on Wednesday following announcements made last week by exporters warning of a $10-20/gt price decrease in the coming two weeks. It remains to be seen if the rest of those announced price contractions will be implemented too. The price movements come after a relatively prolonged softness in the Asian scrap import market.
Prices for HMS I in bulk fell on Wednesday by $10/gt to $240-250/gt delivered export yard, P&S 5ft contracted by the same amount to $260/gt delivered, and shredder feed decreased by the same amount to $190-200/gt delivered. San Francisco Bay Area scrap prices also fell by $10/gt and sit $5/gt below their Los Angeles counterparts. In Houston, contacts reported another week unchanged but feel that exporters will not be able to hold off the sideways trend much longer, even with strong buying prices dominating the domestic market in the region. In the meantime, HMS I still sits at $340-345/gt delivered Houston export yard, P&S 5ft unchanged at $350-360/gt delivered, and shredder feed sideways at $310-330/gt delivered.
A host of factors have affected the Asian scrap import market, with some factors more predominant than others. The rainy season has been prominent as a factor in the Taiwanese and Vietnamese markets, with construction activity and rebar demand being affected. In Pakistan, domestic steel demand has also suffered, putting pressure on domestic scrap and rebar prices; additionally, as SteelOrbis reported, there is expectations that UAE supplies could return to normal levels and place downward pressure on the market.
Bulk scrap prices in the Pacific Northwest (PNW) also remained unchanged this week with HMS I at $290/gt delivered Portland-Tacoma export yard, P&S 5ft at $300/gt delivered, and shredder feed at $225-236/gt delivered.
Containerized
The bearish trend coming from Asia was expected to further depress containerized scrap prices from the USWC, and indeed they fell for the fifth consecutive week. Confirmations have been scarce, but they have started to roll out regarding the price of HMS I/II 80:20 falling by $5-8/mt to $320/mt FAS Long Beach port, some contacts report that they believe that to be the level but have yet to confirm actual deals.
Some uncertainty abounds, relatively speaking, as all contacts in the market recognize that the prevailing trend is negative. Still, for containerized P&S 5ft some reported selling on Monday at $350/mt FAS Long Beach port, while others mention that the price for the grade has dropped to $335-340/mt FAS port. Shredded fell by $5/mt to $340-345/mt FAS port.
