US West Coast ferrous scrap dock price indexes declined in Los Angeles, Seattle, and Portland on Tuesday.
Turkish mills postponed import scrap activity for weeks due to low rebar sales, only to return with lower-priced bids. The lack of Turkish activity from US bulk over the past week decreased expectations for bulk prices. The most recent Davis Index for Turkish import of US-origin HMS 1&2 (80:20) ticked up by $0.50/mt to $288/mt cfr on Tuesday, as Turkish mills revived negotiations.
Asian scrap buyers remain quiet on limited import scrap buys due to weak domestic finished steel prices and concern for a strong regional competition that may severely hamper profitability.
Japanese export scrap prices reached year-highs in September, but with domestic Japanese scrap tags under pressure, export offers softened in small-cargo deals heard later in the month. Demand from Vietnam and Taiwan could improve after the Golden Week holiday and may reinforce Japanese export prices. Moreover, Chinese buyers resuming scrap imports could have Japanese scrap rapidly firm up.
The weekly Davis Indexes in Portland decreased after trending flat last week. HMS 1&2 (80:20) and P&S 5ft indexes slipped by $4/gt to $226/gt delivered and $234/gt delivered, respectively, while shredder feed declined by $5/gt to $186/gt delivered.
In mid-September, market participants expected mills in the Pacific Northwest to trade sideways to slightly up in October compared with September settled prices. Last week, however, expectations shifted to a $5-10/gt price drop this month on softer export prices and demand. On Oct 5, though, regional mills offered scrap buying programs at sideways in October.
At the same time, docks lowered their prices, thereby lowering the indexes, but given the sideways trend of mills, docks may reinstate the former price levels to maintain equilibrium with domestic mill demand.
In San Francisco, the weekly indexes decreased further after slipping by $4-7/gt last week. HMS 1&2 (80:20) declined by $2/gt to $237/gt delivered, while P&S 5ft and shredder feed inched down by $1/gt to $247/gt delivered and $157/gt delivered, respectively.
The weekly Davis Indexes in Los Angeles declined after a flat trend throughout September. HMS 1&2 (80:20) decreased by $4/gt to $183/gt delivered dockside, P&S 5ft slipped by $7/gt to $196/gt delivered, and shredder feed declined by $5/gt to $141/gt delivered. Dock prices in Los Angeles decreased at list level by $10/nt but effective prices were tempered by ongoing demand for scrap flows.
The containerized market in Los Angeles for HMS 1&2 (80:20), reported at $245-250/mt fas on Sep 29, slipped to $240-245/mt fas later in the week, as prices on some deals eroded the bottom of the range by $5/mt. Market participants report an increase of deals by $5/mt from the bottom of the range to $245-250/mt fas this week.