US East Coast collection prices for ferrous scrap were rangebound this week consistent with the latest export movements. This follows gradual increases over the past month, and last week’s boost driven by healthy domestic trade activity.
Houston’s dock prices increased for the second straight week, closing the gap from hefty domestic gains last week and are more in line with local markets. However, Houston dock prices may have peaked for now considering export prices along with rising freight costs.
Dockside sales for #1 HMS on the East Coast are generally flat and continue to range between $370-410/gt on Tuesday based on dock location and base price from prior sales. For the past week, some market participants assume, East Coast dock prices may have also peaked in the short term.
Moreover, mills within the span of East Coast markets have reduced buying programs lately while scrap yards report steady flows, which is also cutting into demand and keeping a lid on larger dockside price increases.
The Davis Index for US HMS 1&2 (80:20) exports to Turkey have held steady for the past month. The index for the grade stands at $503.48/mt cfr compared to $501.82/mt cfr on Jun 8. Longer-term, monthly activity continues with modest change as compared to $505/mt cfr for the export grade on May 18.
In Boston, the weekly Davis Index for export yard #1 HMS stayed at $373/gt while P&S 5ft remained unchanged at $384/gt delivered Boston dock. Shredder feed held firm at $258/gt delivered.
The weekly Davis Index for export yard buying prices in New York were flat for #1 HMS, P&S 5ft and shredder feed at $405/gt delivered, $415/gt, and $320/gt delivered New York dock, respectively.
In Philadelphia, the Davis Index for export yard collection prices inched up by $1/gt for #1 HMS to $405/gt delivered and P&S 5ft rose by $3/gt to $416/gt delivered Philadelphia dock. Shredder feed remained at $321/gt delivered.
Houston’s weekly Davis Index moved up by $20/gt for #1 HMS to $434/gt delivered and rose by $9/gt for P&S 5ft to $451/gt delivered Houston dock. Shredder feed increased by $18/gt to $335/gt delivered.