US containerized ferrous scrap indexes moved in opposite directions, with West Coast export markets softening and the East Coast markets rising, especially in New York.
Last week, shredded scrap was quoted as low as $225/mt fas on the East Coast, as some sellers heavily discounted material while others stood firm at $240-245/mt fas. That caused a net decline in the region’s index prices, which rebounded this week on higher prices.
The New York shredded index, for example, was positively influenced by higher demand and import prices from Pakistan after duties on the material were repealed. Resultantly, Pakistan focused its purchases on shredded crap.
Asian markets are still affected by lower capacity utilization at mills because of summer policies, which include higher energy prices that result in fewer shifts, as well as downward pressure on finished steel prices caused by weak domestic consumption.
However, buyers are uncertain whether or not prices will keep softening. Although domestic finished steel prices in Asian markets are under pressure, domestic scrap prices could still rise. Moreover, the latest Japanese export tender was higher than expected. Japan has resisted lower offers for the past week, signaling that prices have reached the floor.
The weekly Davis Index in New York for #1 busheling increased by $8/mt to $256/mt fas, and increased for HMS 1&2 (80:20) by $15/mt to $235/mt fas. The Davis Index for P&S 5ft increased by $11/mt to $249/mt fas, while the index for shredded increased by $8/mt to $243/mt fas. The index for machine shop turnings jumped by $28/mt to $211/mt fas. Turnings prices, at times, had wide parameters, depending on how strong demand was. Buyers in Pakistan, India, and Bangladesh were notably active purchasing turnings during the last week.
In Los Angeles, the weekly Davis Indexes for #1 busheling remained flat at $227/mt fas. The remaining indexes declined, though, with HMS 1&2 (80:20) decreasing by $3/mt to $206/mt fas, P&S 5ft dropping by $1/mt to $221/mt fas, and shredded falling by $1/mt to $221/mt fas.
The Davis Indexes in San Francisco decreased by $5/mt to $225/mt fas for #1 busheling, and slid by $8/mt to $205/mt fas for HMS 1&2 (80:20). The index for P&S 5ft decreased by $3/mt to $220/mt fas, and the index for shredded decreased by $3/mt to $220/mt fas.
The weekly Davis Indexes in Seattle decreased across most grades, as #1 busheling decreased by $5/mt to $223/mt fas, and HMS 1&2 (80:20) declined by $7/mt to $208/mt. However, the index for P&S 5ft increased by $1/mt to $220/mt fas, but the index for shredded fell by $3/mt to $220/mt fas.