US East Coast ferrous scrap dock collection prices have made some progressive improvements over the past two months. However, the momentum decelerated this week. In Houston, on the other hand, dockside tags have risen steadily for the past three weeks and were still trending up on Tuesday.
The overall scrap demand is sufficient and supply flows are moderate, though export activity is waning, rendering sluggish price movement and subdued markets, namely on the East Coast and the domestic Midwest region.
Collection prices along the East Coast are unchanged barring slight upward or downward movements. HMS 1&2 (80:20) is currently trading around $240-245/gt delivered East Coast dock, an increase of about $20/gt compared to price levels on August 18. Meanwhile, Houston dock prices are up by about $25/gt for HMS 1&2 (80:20) compared to levels on September 1.
US market participants believe dockside prices may start declining soon while some feel price points will remain unchanged in the near term. Mills in Turkey need scrap for October shipments; however, negotiations are presently on hold as Turkish buyers predict export prices will weaken.
In Boston, the weekly Davis Index for export yard HMS 1&2 (80:20) moved up by $3/gt to $243/gt delivered dock. P&S 5ft ticked up $3/gt to $253/gt delivered Boston dock while shredder feed slipped by the same amount to $175/gt delivered.
The weekly Davis Index for export yard buying prices in New York moved down by $1/gt for all grades declining to $240/gt delivered for HMS 1&2 (80:20), $250/gt delivered for P&S 5ft, and to $186/gt delivered for shredder feed.
In Philadelphia, the weekly index for export yard collection prices of HMS 1&2 (80:20) remained unchanged at $241/gt delivered, and P&S 5ft held at $250/gt delivered Philadelphia dock. The index for shredder feed slid down by $2/gt to $189/gt delivered.
The weekly Davis Indexes in Houston increased $6/gt for HMS 1&2 (80:20) to $261/gt and P&S 5ft moved up by $17/gt to $280/gt. The shredder feed index climbed $5/gt to $196/gt delivered. Domestic scrap demand remains healthy in the Houston area as steel mill sales have been strong.