Scrapyards face unusually high “moisture deductions” on UBC’s.
Processors and sellers of UBC’s have reported “moisture deductions” of 5%-11% by US can buyers. Despite storing UBC scrap indoors, scrapyards have conveyed US mills specifications on UBCs and other items are more strict. A couple brokers who were in need of covering UBC positions into mills became aggressive and bought at 63 cent/lb delivered to the south region. However, our intel finds that the majority UBC pricing remains around 59-61 cent/lb delivered to the Midwest and South regions of the US.
Mills demand for 5052 and 6063 remains stable. Sources on the ground have confirmed that mills continue to have an appetite for 5052 and 6063 over other grades. The price for 5052 is 91 cent/lb delivered to the South and Midwest. This equates to 14 cents under MWTP (LME + MWP). The price for 6063 is 92 cent/lb delivered to the Midwest and South making 6063 a 13 cent/lb spread under MWTP (LME+MWP). Mills are able to quickly and easily fill their scrap needs of 5052 and 6063 because of the abundance of supply in US market.