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

Declines in US East Coast collection prices for ferrous scrap tapered down this week after a downward spiral through early August. Houston docks trended flat following sharper drops last week.


Healthy ferrous scrap flows amid weak exports are still putting downward pressure on prices though, some deals remain at firm levels, balanced by persisting export activity amid a shortage of available trucking for dockside deliveries.


Sales for #1 HMS on the East Coast remained rangebound or edged down slightly, similar to the last four weeks, and range between $330-365/gt per dock location and prior sales level at present. The grade has dropped by $25-35/gt compared to $365-390/gt a month ago.


Market participants have voiced some concerns that another round of dockside price decreases may be on the way by next week especially as ocean freight rates are on the rise, now above $50/gt.


The Davis Index for US HMS 1&2 (80:20) exports to Turkey was down $7.12/mt at $454.82/mt cfr on Tuesday compared to $461.94/mt cfr on Aug 10. A longer-term monthly outlook shows that prices for this export grade dropped by $30.07/mt on Tuesday compared to $484.89/mt cfr for the material on Jul 20. 


In Boston, prices are still lagging under nearby docks. The weekly Davis Index for export yard #1 HMS and P&S 5ft both fell by $3/gt to $350/gt and $360/gt delivered Boston dock, respectively. The shredder feed index fell by $2/gt to $241/gt delivered Boston export yard. 


The weekly Davis Index for export yard buying prices in New York was unchanged for #1 HMS at $359/gt delivered and P&S 5ft remained at $369/gt delivered. Shredder feed was firmer, moving up by $6/gt to $276/gt delivered New York dock. 


Philadelphia’s Davis Index for export yard collection prices ticked down by $1/gt for #1 HMS to $360/gt delivered and P&S 5ft fell by $2/gt to $369/gt delivered Philadelphia dock. The index for shredder feed remained stronger, rising up by $7/gt to $277/gt delivered. 


In Houston, the weekly Davis Index remained unchanged for both #1 HMS at $388/gt delivered and P&S 5ft at $424/gt delivered. The index for shredder feed ticked up by $4/gt to $297/gt delivered Houston dock. Local sellers mentioned that shredder feed has added demand right now, while other grades are competing domestically holding some prices firm. 

Leave a Reply

Your email address will not be published.