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

US East Coast and Houston dock collection prices for ferrous scrap trended flat to up following three straight weeks of declines. However, only small price movements have occurred in the past week.

 

Export yard buying prices for #1 HMS on the East Coast are averaging near $310-320/gt increasing by about $5-10/gt in one week. Yet, prices remain unchanged for many sellers moving new material this week. Current pricing compares to the grade transacting at $400-410/gt on Jan 12. 

 

The full range of #1 HMS sales are between $300-330/gt, the same as last week but some deals are priced just below Feb 2 levels while others are above it. A few major bulk exporters raised prices for #1 HMS to $315/gt at certain Northern East Coast docks while a Southern East Coast exporter paid up to $325-330/gt for the material.

 

Recent export prices to Turkey have dropped by $16.47/mt to $398.33/mt cfr for HMS 1&2 (80:20) compared to $414.80/mt cfr on Jan 26.  A more expanded view shows the daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) falling by $83.78/mt in one month from $482.11/mt cfr on Jan 12.

 

Domestic ferrous scrap markets have recently wrapped up February trading at $50-60/gt declines for #1 HMS and other secondary grades. The scrap market’s outlook will depend greatly on export demand that is described as improving on increased activity Tuesday. 

 

Sellers are also hopeful that exports will soon pick up the scrap left overhanging from February’s trade to ease further domestic price declines. This could drive up prices in March with February marking the bottom of the market, some participants said.

 

In Boston, the weekly Davis Index for export yard #1 HMS remained unchanged at $310/gt and P&S 5ft was flat at $321/gt, delivered Boston dock. Shredder feed increased by $4/gt to $214/gt delivered Boston export yard.

 

The weekly Davis Index for export yard buying prices in New York moved up by $3/gt to $315/gt delivered for #1 HMS and $4/gt to $325/gt delivered dock for P&S 5ft. The index for shredder feed inclined by $14/gt to $225/gt delivered. 

 

In Philadelphia, the Davis Index for export yard collection prices of #1 HMS increased by $4/gt to $317/gt delivered and P&S 5ft went up by $3/gt to $326/gt delivered Philadelphia dock. The index for shredder feed increased by $13/gt to $226/gt delivered.

 

Shredder feed is among the widest ranged material with prices transacting from about $210-250/gt delivered based on East Coast dock location and prior sales level.

 

In Houston, the weekly Davis Index increased $10/gt for #1 HMS to $335/gt and P&S 5ft moved up by $18/gt to $353/gt delivered Houston dock. The shredder feed index rose $12/gt to $253/gt delivered. 

Leave a Reply

Your email address will not be published.