US ferrous: WC bulk edges up, supply tightens

US west coast ferrous scrap prices increased slightly this week following sustained demand from south Asia, reduced availability, and lower freight rates, while containerized prices on both coasts remained mostly stable.

West coast bulk

The Argus HMS 1/2 80:20 fob Los Angeles export assessment rose $5/metric tonne (t) to $360-$365/t fob up from $355-360/t the prior week.

Multiple Indian consumers were heard to be canvasing the market for bulk cargoes this week primarily in western India.

One Indian steelmaker was heard to have bought a mixed-composition cargo from a US west coast supplier with shred priced at $420/t cfr, but specific details on the sale did not emerge.

Market participants noted some skepticism over the transaction as bid indication levels for shred were heard as high as $405/t cfr earlier in the week.

As a result, the sale was not viewed as being indicative of broader pricing levels this week across the coast.

The activity in Kandla comes on the heels of a US west coast sale to Chennai late last week where shred was heard priced between $410-415/t cfr.

Bulk availability off the US west coast has tightened amid a combination of slower inbound flows and strong sales activity in recent weeks with around 8-9 deals heard done so far this month.

Faced with the tighter availability and a rebound in Turkish bulk import market, which is a barometer for south Asia trade, suppliers were broadly heard to be taking a wait-and-see approach to new sales.

Bangladesh buyers remained mostly sidelined this week as letter of credit issues continued to weigh on trading activity, but one consumer was heard to have purchased a mixed-composition cargo from a US west coast supplier late last week - specific details on the transaction did not emerge.

Offer indication levels for HMS 1/2 80:20 in Bangladesh were heard to be standing at around $420/t cfr, unchanged from the previous week.

In southeast Asia demand remained strained amid weakness across China's steel market and aggressive lower-priced billet offers throughout the region.

Vietnamese bid indications for HMS 1/2 80:20 were heard at $400/t cfr, while offer indications remained at $420/t cfr.

South Korean consumers were heard to be mostly on the sidelines again this week with little appetite at elevated levels required to compete with south Asia consumers.

Elsewhere multiple Latin American consumers were heard to be canvasing the US for cargoes over the last two weeks.

West coast containers

West coast containerized ferrous scrap prices were flat this week as US sellers maintained firm offers despite limited seaborne demand.

Los Angeles containerized fas prices were flat with HMS 1/2 80:20 at $335-340/t fas, #1 busheling at $360-365/t fas, and shred and 5ft P&S both at $355-360/t fas.

San Francisco and Seattle-Portland registered similar price movements this week.

Sluggish steel demand largely kept Asian containerized buyers out of the market, with some Taiwanese buyers retreating in hopes of securing lower prices next week. Despite muted demand, US suppliers largely maintained flat west coast fas containerized offers amid tighter supply as inflows have retreated.

Declines in Chinese steel markets weighed on sentiment in the second half of the week with some market participants expecting further downside through late May.

The Argus daily containerized HMS 1/2 80:20 cfr Taiwan assessment stood at $365/t cfr this week, flat from the week prior.

East coast containers

US east coast containerized fas export prices were unchanged this week amid increased demand from Indian consumers through the first half of the week.

The Argus containerized shredded scrap fas New York export assessment stood at $400-405/t fas from the previous week.

Market participants noted that Indian consumers were actively canvasing for containerized material along the US east coast, as well as throughout the UK and Europe from Monday through Wednesday.

Still, the uptick in demand faded in the latter half of the week as consumers increasingly fulfilled buying requirements and exited the the market.

Some market participants noted that gains global bulk prices, following a US-specific sale done today to Turkey with shred at $405/t cfr Turkey and slowdowns in daily intake volumes across the US east coast could help to support fas pricing in the short-term.

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