Zorba: Shredder resistance lifts US price

US prices for zorba perked up modestly on Friday, bucking global trends, as large shredders resisted continued attempts by domestic consumers to buy down further after a month of steep declines.

US consumer prices for 95/2 zorba increased by 2pc to a one-week high of 63-66¢/lb delivered on Friday as small players were able to buy sideways but larger consumers were being pressured to accept levels of 66¢/lb for bigger lots.

Market participants expect significant drops in the July US ferrous scrap trade as well, which could lead to less zorba generation and higher prices, even despite aluminum scrap and alloy demand being off.

Zorba export prices, however, kept softening with aluminum, copper and flagging ADC12 alloy markets which have yet to find a bottom in Asia.

US east coast and west coast export prices for 99/3 zorba each fell by 4pc on Friday to 67-70¢/lb fas or their lowest levels in a year.

"Malaysia said they don't want to buy anything right now because there's no end user demand [for alloy]," one shredder in the US Mid-Atlantic region said.

Indian import prices for 95/2 zorba fell by 2pc to 71-72¢/lb cif, while Chinese import prices for 99/3 zorba fell by 9pc to 75-76¢/lb over the same period.

Argus' daily used beverage can (UBC) price edged down by 0.5pc to 86.5-87.5¢/lb delivered mill, taking its direction from the LME which was softer based on a stronger US dollar.