Container prices decreased on the US West and East Coasts due to the continued effect of lockdown and containment policies in importing countries to contain COVID-19 that are limiting domestic production in those countries. A few orders from the West Coast were reported to Taiwan and Malaysia but exports to Indonesia, India, and Thailand remain uncertain. India specifically is on a two-week nationwide lockdown. 

 

Sellers and buyers continue facing higher freight rates, limited container availability, limited buying interest, and uncertainty within scrap yard operations. Declining prices on regional billet, an alternative to scrap, along with lower prices of Japanese scrap are contributing to the downward price pressure on US scrap. 

 

The Davis Indexes for containerized scrap in New York decreased by $12/mt for #1busheling to $234/mt fas, by $5/mt for HMS 1&2 (80:20) to $211/mt fas, by $6/mt for machine turnings to $175/mt fas, by $14/mt for P&S 5ft to $228/mt fas, and by $12/mt for shredded to $225/mt fas.

 

Davis Index confirmed East Coast transactions to Asia from Monday through Wednesday this week at $220-224/mt fas for shredded scrap. East coast exporters are concerned of further downward pressure and fewer destinations to send their material. 

 

Several smaller exporters reported staying on the sidelines this week and next, as buyers are limited. Market participants also remain concerned about the delivery logistics to Asian countries on lockdown as transactions to those destinations may result in a disproportionate amount of costly claims against shipments due to delivery performance issues.

 

The Davis Index for #1busheling fas Los Angeles decreased by $5/mt to $208/mt fas and fell by $12/mt to $186/mt for, HMS 1&2 (80:20). The index for P&S 5ft declined by $3/mt to $207/mt fas, while shredded was flat at $210/mt fas. 

 

From Los Angeles, HMS 1&2 (80:20) is reported at $205-210/mt cfr Taiwan, down $10-15/mt from a week ago when Davis Index reported it at $220/mt cfr Taiwan, as activity continues to remain limited due to weak demand and limited container availability.

 

The Davis Indexes for containerized scrap from San Francisco decreased by $7/mt for #1busheling to $219/mt fas, by $3/mt for HMS 1&2 (80:20) to $201/mt, by $6/mt for P&S 5ft to $215/mt fas, and by $6/mt for shredded to $215/mt fas.

 

The Davis Index for #1 busheling fas Seattle decreased by $19/mt to $206/mt fas and fell by $21/mt to $175/mt for HMS 1&2 (80:20). The index for P&S 5ft declined by $25/mt to $220/mt fas, while shredded decreased by $19/mt to $204/mt fas.

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