Containerized prices to docks in the US West Coast (USWC) continue to slide down amid subdued East Asian demand for scrap and limited sales to that region. This week, prices decreased by another $5/mt as containerized HMS I/II 80:20 dropped to $340/mt FAS Long Beach port, while contacts assure that a decline to $335/mt FAS is expected very soon. At the same time, scrap traders in the USWC continue to complain that the rising cost of containerized ocean freight makes it very expensive to conduct business.
Containerized shredded scrap fell by $5/mt to $360-365/mt FAS Long Beach port, and containerized #1 busheling fell by the same amount to $365/mt FAS port. In the San Franscisco Bay Area, containerized scrap prices also decreased by $5/mt, with HMS I/II 80:20 settling at $335/mt FAS Oakland port, shredded at $355-360/mt FAS, and #1 busheling at $360/mt FAS.
In the case of Indian demand for containerized scrap from overseas, SteelOrbis reported that buyers remain cautious as secondary mills have seen declining sales and lower prices for steel used in construction. In this environment, sellers have also been cautious in submitting offers. Containerized shredded scrap from the EU and UK is reported at $390-400/mt CFR Nhava Sheva port.
Prices for containerized material on the US East Coast (USEC) also continue to slide down, albeit at a slower pace. In this case, some price erosion was seen mainly at the lower end of prices, involving lower-volume deals. Scrap prices on the USEC, in bulk or containerized form, have also been affected by a sluggish export market to Turkiye. Even though most of the containerized scrap from USEC is sold to Asia, scrap availability impacts prices.
In that regard, the bulk export market to Turkey has been softening. On Wednesday, the latest deal from USEC lowered the price of bulk HMS I/II 80:20 by $5/mt to $409/mt CFR Turkey. Prices for containerized HMS I/II 80:20 settled at $325-330/mt FAS New York (NY) port from $330/mt FAS last week; and shredded dropped to $350-355/mt FAS NY port from $355/mt FAS.
Bulk scrap
The trend has been similar in the USWC for bulk scrap prices as demand remains sluggish to E. Asia. USWC bulk scrap prices to docks fell by $25/gt in the past two weeks, yet this week they saw a respite. 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 these Southern California (SoCal) levels.
Export activity to Pakistan remains slow after the Eid-ul-Adha holiday, as reported by SteelOrbis, as participants await more clarity on the country’s federal budget. Buyers in Pakistan have been in no rush to secure deals and there have been rumors of bids to be disclosed at lower levels than the current ones.
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. Houston dock prices trended sideways for another week, as HMS I still sits at $335/gt delivered export yard, P&S 5ft at $350/gt delivered, and shredder feed at $310-320/gt delivered.
