US East Coast collection prices for ferrous scrap saw steeper declines this week as the market continued to trend down for the fifth successive week amid abundant supply. Houston dock prices decreased as well with sharper downward movements after remaining flat last week.
Scrap material is in ample supply while export activity has gradually tempered since mid-June. Export markets have been quiet while demand and prices for steel products are slipping.
The Davis Index for US HMS 1&2 (80:20) exports to Turkey was down by about $5/mt at $449.85/mt cfr on Tuesday compared to $454.82/mt cfr on Aug 17. The expanded monthly view indicates prices for this export grade have fallen by $29.53/mt compared to $479.38/mt cfr on Jul 27.
Dockside sales for #1 HMS on the East Coast have slipped by approximately $10/gt this week and currently range between $330-350/gt depending on dock location and prior sales level. The grade has dropped by about $30/gt compared to $360-380/gt a month ago.
In Boston, prices were marginally softer than levels at alternative East Coast docks. The weekly Davis Index for export yard #1 HMS and P&S 5ft both moved down $9/gt to $341/gt and $351/gt delivered Boston dock, respectively. The shredder feed index ticked down by $1/gt to $240/gt delivered Boston export yard.
The weekly Davis Index for export yard buying prices in New York dropped by $11/gt for #1 HMS to $348/gt delivered and declined by the same amount for P&S 5ft to $358/gt delivered. Shredder feed is maintaining some strength, moving up by $2/gt to $278/gt delivered New York dock.
In Philadelphia, the Davis Index for export yard collection prices fell by $11/gt for #1 HMS to $349/gt delivered and P&S 5ft dropped by $12/gt to $357/gt delivered Philadelphia dock. The index for shredder feed remained stronger, inching up by $1/gt to $278/gt delivered.
In Houston, the weekly Davis Index dropped by $20/gt for #1 HMS and P&S 5ft to $368/gt and $404/gt delivered, respectively. The index for shredder feed decreased by $19/gt to $278/gt delivered Houston dock.