Prices for containerized ferrous scrap increased in New York and Seattle but remained rangebound in Los Angeles and San Francisco. This marks the second straight weekly increase this month on the East Coast, after flat index movements the first week of May.
The weekly Davis Index in New York for #1 busheling increased by $7/mt to $250/mt fas while the index for HMS 1&2 (80:20) rose by $2/mt to $215/mt fas. The index for machine turnings increased by $4/mt to $187/mt fas. The Davis Index for P&S 5ft increased by $11/mt to $242/mt fas in tandem with shredded, which increased by $7/mt to $235/mt fas. Market participants report a weak container market with strong dock prices.
Export buyers are finding it difficult to compete against substantially more attractive US domestic prices. In May, #1 busheling was heard at $310-330/gt delivered to mill from the East Coast, depending on distance. Sellers, however, are preferring to retain inventories because of a sideways to slightly up outlook on domestic scrap prices.
Containerized prices in Los Angeles and San Francisco have remained rangebound. Some buyers from Taiwan have finished purchasing for the month while others, due to uncertainty in own domestic finished steel markets, refuse to increase buying prices. Higher Japanese scrap export prices may provide support for containers next week, but several market participants are forecasting a continued sideways pricing market for the remainder of May.
In Los Angeles, the weekly Davis Indexes trended flat across all grades with #1 busheling at $213/mt fas and HMS 1&2 (80:20) at $204/mt, P&S 5ft at $223/mt fas, and shredded at $218/mt fas.
The weekly Davis Indexes in San Francisco were flat for #1 busheling at $225/mt fas and increased for HMS 1&2 (80:20) by $3/mt to $196/mt fas. The index for P&S 5ft increased by$4/mt to $223/mt fas and trended flat for shredded scrap at $223/mt fas.
In Seattle, the Davis Indexes increased as Asian buyers shifted attention from the lower West Coast to the northern Seattle and Vancouver region. The indices for #1busheling increased by $10/mt to $218/mt fas, for HMS 1&2 (80:20) by $17/mt to $202/mt fas, for P&S 5ft by $12/mt to $218/mt fas and for shredded by $8/mt to $218/mt fas. Upward momentum on pricing was expected as buyers sought inventories and fas prices were regionally lower, last week.