US containerized ferrous scrap prices ticked down again on the West Coast but were mixed on the East Coast on Thursday. Buyers noted that sellers were offering export volumes at firm pricing.
The US domestic scrap market in August is projected to soften with price declines of $20-30/gt against July settlement. The market is anticipated to show some softness on additional summer feedstocks into yards and well-managed pricing management from mills. However, several large sellers noted that their yards may owe scrap at the end of the month.
Historically, mills tend to cancel scrap orders in a softer market so sellers are noting that scrap owed could be disruptive if scrap yards prioritize mills that keep prices sideways. The August trading week may also be influenced by several large publicly held ferrous scrap companies that close their financial books around August. Over placement to show strong financial results could place pressure on the market.
Container demand and prices are quieter due to the growing COVID-19 cases that are leading various countries to lockdown. Indian buyers noted that despite the lower buying levels, at least this week, sellers are maintaining firm pricing. Some scrap yard dealers believe that as the countries re-open their hunger for imported scrap at limited domestic volumes may support container prices.
Japan lowered some domestic ferrous prices depending on grade, which gives exporters the opportunity to accept lower bid levels.
The weekly Davis Indexes in New York for #1 busheling rose marginally by $1/mt to $507/mt in tandem with machine shop turnings that increased by $7/mt to $433/mt fas. HMS 1&2 (80:20) declined by $1/mt to $460/mt fas while P&S 5ft and shredded dropped by $3/mt to $485/mt fas and $481/mt fas, respectively.
In Los Angeles, the indexes for #1 busheling and P&S 5ft declined by $5/mt to $437/mt fas and $428/mt fas, respectively. HMS 1&2 (80:20) fell by $4/mt to $405/mt fas and shredded dropped by $6/mt to $430/mt fas.
San Francisco’s indexes declined for the second successive week with #1 busheling and shredded both declining by $4/mt to $434/mt fas and $436/mt fas, respectively. HMS 1&2 (80:20) fell by $3/mt to $402/mt fas as P&S 5ft declined by $6/mt to $424/mt fas.
In Seattle, containerized ferrous prices dropped by $2-4/mt compounding to the decline of $5/mt in the prior week. The Davis Index for #1 busheling fell by $2/mt to $428/mt fas as shredded declined by $3/mt to $424/mt fas. HMS 1&2 (80:20) and P&S 5ft both contracted by $4/mt to $396/mt fas and $422/mt fas, respectively.