Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

US East Coast collection prices for ferrous scrap continued to decline amid abundant scrap supply along with weak export prices and the latest export activity. Houston docks began trending down this week as well following rangebound prices for over a month as scrap flows tightened in the region.


Dockside prices have been flat to down since late June while market participants foresee weakness extending towards Q4. However, sellers are not anticipating significant dockside price drops in the short term. Dockside sales for #1 HMS on the East Coast decreased by another $5-10/gt similar to the past two weeks and generally range between $355-365/gt depending on dock location and prior sales level.


The Davis Index for US HMS 1&2 (80:20) exports to Turkey declined by $15.78/mt to $463.60/mt cfr on Tuesday compared to $479.38/mt cfr on Jul 27. A longer-term monthly view shows the grade has dropped nearly $40/mt on Tuesday compared to $500.82/mt cfr for the export material on Jul 6. 


Shredder feed prices on the East Coast have been erratic, rising considerably in early June, then falling just as much by early July followed by rangebound or small upward or downward price movements. Overall, the grade ranges from $250/gt or a bit under and up to $330/gt based on prior sales, demand, flows, and region.


In Boston, prices continue to lag under nearby docks. The weekly Davis Index for export yard #1 HMS fell by $7/gt to $358/gt delivered Boston dock and P&S 5ft decreased by $8/gt to $367/gt delivered. The shredder feed index remained unchanged at $250/gt delivered Boston export yard. 


The weekly Davis Index for export yard buying prices in New York decreased by $9/gt for #1 HMS to $362/gt delivered, P&S 5ft fell by $8/gt to $373/gt, and shredder feed held on showing an uptick of $2/gt to $270/gt delivered New York dock. 


In Philadelphia, the Davis Index for export yard collection prices moved down by $10/gt for #1 HMS to $363/gt delivered and P&S 5ft fell by $9/gt to $374/gt delivered Philadelphia dock. The shredder feed index ticked up by $1/gt to $270/gt delivered. 


In Houston, the weekly Davis Index decreased by $8/gt for #1 HMS to $416/gt delivered and P&S 5ft slipped by $4/gt to $445/gt delivered Houston, while shredder feed fell by $2/gt to $314/gt delivered Houston dock. Area participants foresee dock prices going down amid quiet exports and in tandem with domestic activity.

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