Shredder feed buying prices across the US have neared at least a 10-month high as seasonally slower inbound flows, firm shred demand, small gains in export markets and a rally in non-ferrous scrap export prices have driven shredders to raise buying prices.
Major bulk exporters on both the east and the west coasts, as well as inland domestic shredders, have raised feed prices over the last few weeks and paid premiums for large-tonnage and remote volumes in some areas because of stiff regional competition and near-term highs in zorba prices.
Moderate gains in the US domestic January scrap trade and wintry weather have increased competition for the grade, while gradual gains in the export markets have also begun to lift prices. Coastal exporters attempted to maintain stable buying prices through the year-end amid relatively stable export demand, but in recent weeks most buyers have hiked prices.
Average east coast shredder feed prices across Albany, Boston, New York and Philadelphia on Wednesday rose to $225/gt delivered export yard, the highest level since April. Average west coast shredder feed prices across Los Angeles, San Francisco and Seattle/Portland increased to $195/gt, the highest since September 2024.
Inland shredders also hiked prices early this month in response to gains January domestic ferrous scrap settlements. Some mill-owned shredders have increased infeed prices at higher rate than the domestic shred trends, highlighting supply pressures and creating some pockets of heightened regional competition for shredder feedstock.
Light iron retail scale prices across five major US regions assessed by Argus — Ohio Valley, Texas, Midwest, northeast and southeast — also rose to the highest levels since late-April. Average light iron scale prices across these regions ranged between $150-220/gt in the latest assessment on 9 January, at least a 10-month high for most regions.
Since December, domestic shredded scrap prices have increased by $47/gt, resulting in US domestic steel mills paying higher prices for shred than offshore buyers for the first time since late September. National average shred price for January rose to $408/gt ($401/metric tonne) delivered mill, while the Argus daily cfr Turkey shred ferrous scrap price assessment rose to $400/gt ($394/t) on Wednesday.
The run-up in shredded aluminum products like zorba has allowed shredders to tap into higher revenue streams from various nonferrous downstream items, which has likely helped to increase shredder feed prices higher so far this month.
Robust demand from Asia and higher intrinsic values tied to gains in London Metal Exchange aluminum and copper prices have driven zorba prices to multi-year highs in Argus' price history dating back August 2018.
