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

US East Coast and Houston dock collection prices for ferrous scrap continued to trend down for the second consecutive week, falling by $35-40/gt, consistent with weakening export activity and declining domestic market sentiment.


Export prices to Turkey from the US for HMS 1&2 (80:20) have been dropping since the first week in January and fell by $67.31/mt to $414.80/mt cfr on Jan 26 compared to a highpoint of $482.11/mt cfr on Jan 11.


The latest US domestic ferrous scrap predictions also point toward price drops that may occur during February trading, some as high as $60/gt for certain grades such as shredded amid improved flows for the material and healthier mill inventories.


Export yard buying prices for #1 HMS on the East Coast are averaging near $340-345/gt, with some export yards asking as low as $330/gt for local tons on Tuesday. Declines represent about $40/gt or more for most sellers since last week and involve a full range of deals between $330-360/gt. 


Industry participants envision further declines of about $20-40/gt are on the way, based on the most recent quotes for shredded container exports, which have fallen by $65/gt or more since January’s start.


Larger sellers report holding onto material as dockside prices plunge, in hopes for a price rebound in February. Higher-tonnage sales to bulk exporters have paused as lower-priced transactions continue at reduced ton orders and through smaller-scale dealers.


In Boston, the weekly Davis Index for export yard #1 HMS fell by $38/gt to $339/gt and P&S 5ft dropped by $37/gt to $351/gt, delivered Boston dock. Shredder feed declined by $30/gt to $243/gt delivered Boston export yard. 


The weekly Davis Index for export yard buying prices in New York moved down by $39/gt to $340/gt delivered for #1 HMS and by $40/gt to $350/gt delivered dock for P&S 5ft. The index for shredder feed declined by $28/gt to $246/gt delivered. 


In Philadelphia, the Davis Index for export yard collection prices of #1 HMS dropped by $37/gt to $342/gt delivered and P&S 5ft went down by $35/gt to $353/gt delivered Philadelphia dock. The index for shredder feed fell by $28/gt to $245/gt delivered.


In Houston, the weekly Davis Index decreased by $14/gt for #1 HMS to $344/gt and P&S 5ft moved down $21/gt to $354/gt delivered Houston dock. The shredder feed index dropped by $18/gt to $265/gt delivered. 

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