US East Coast collection prices for ferrous scrap slipped for the second successive week on healthy supply and slow export activity. Docks in Houston were also quiet in anticipation of domestic trading that will commence this week.
Exports will likely pick up again when offers resume as suppliers await improved prices. Also, Turkish mill buyers are making inquiries and will soon require August shipment material.
The Davis Index for US HMS 1&2 (80:20) exports to Turkey has remained rangebound near $500/mt cfr for over a month. The index for the grade stood at $500.82/mt cfr on Tuesday compared to $499.52/mt cfr on Jun 29. The extended monthly outlook shows mild change as compared to 501.82/mt cfr for the export grade on Jun 8.
Dockside sales for #1 HMS on the East Coast are down by about $5/gt compared to last week, ranging between $365-395/gt based on dock location and base price from prior sales. Market participants witnessed a further price decay of about $10/gt last week on the East Coast and foresee another $5/gt drop soon.
In Boston, prices were flat or ticked down slightly and are still under surrounding docks. The weekly Davis Index for export yard #1 HMS fell by $2/gt to $378/gt and P&S 5ft inched down by $1/gt to $389/gt delivered Boston dock. Shredder feed is flat at $270/gt delivered Boston export yard.
The weekly Davis Index for export yard buying prices in New York fell by $3/gt for #1 HMS to $392/gt delivered, P&S 5ft dropped by $2/gt to $403/gt, and shredder feed moved down by $22/gt to $293/gt delivered New York dock.
Shredder feed was in high demand in early June, which boosted the grade to collect premium prices in certain locations, although now the material has fallen back to typical levels.
In Philadelphia, the Davis Index for export yard collection prices moved down by $5/gt for #1 HMS to $391/gt delivered and P&S 5ft fell by $4/gt to $401/gt delivered Philadelphia dock. The index for shredder feed declined by $21/gt to $295/gt delivered.
In Houston, the weekly Davis Index remained flat for all grades with #1 HMS at $418/gt delivered, P&S 5ft stayed at $451/gt and shredder feed was unchanged at $335/gt delivered Houston dock.