US East Coast ferrous scrap dock collection prices pushed up again amid strong exports, healthy domestic scrap sentiment and limited material availability. Dock prices for most grades, barring shredder feed, remained rangebound in Houston due to a lull in holiday activity.
Market participants expect further significant price hikes over the next few weeks as export destinations will pick up the pace entering the New Year, to secure cargoes needed for February shipment.
January domestic scrap trading is also projected to emulate the gains of $60/gt and up witnessed in December. However, ample tonnage was sold last month, and supply has not been replenished to preferred volumes yet. Some sellers expressed interest in receiving the benefit of expected price increases and are making efforts to boost flows.
Export yard buying prices for #1 HMS on the East Coast averaged around $350/gt for local tons on Tuesday, rising by about $20-25/gt since last week and catching up with the larger export price movements since early December.
Pricing for #1 HMS encompasses a full range of $335-395/gt at some East Coast dock locations. Deals closer to $360/gt and higher are for smaller orders and from remote sources. Sellers to the docks are receiving close to $90/gt more for material this week compared to December’s start.
Export prices to Turkey from the US for HMS 1&2 (80:20) are leveling off due to the holidays, with small increases during the past week, and holding at $472-473/mt cfr on Tuesday. This level is up $46/mt from $427/mt cfr on Dec 15 and has increased by about $113/mt since Dec 1.
In Boston, the weekly Davis Index for export yard #1 HMS climbed by $22/gt to $349/gt and P&S 5ft jumped by $23/gt to $359/gt delivered Boston dock. Shredder feed rose by $17/gt to $240/gt delivered.
The weekly Davis Index for export yard buying prices in New York rose by $25/gt for #1 HMS and P&S 5 ft to $354/gt delivered and to $363/gt delivered, respectively. The index for shredder feed increased $11/gt to $253/gt delivered.
In Philadelphia, the Davis Index for export yard collection prices of #1 HMS increased by $28/gt to $356/gt delivered while P&S 5ft rose by $27/gt to $365/gt delivered Philadelphia dock. The index for shredder feed climbed by $14/gt to $247/gt delivered.
In Houston, the weekly Davis Index remained flat for #1 HMS and P&S 5ft at $350/gt delivered and $370/gt delivered Houston dock, respectively. The shredder feed index increased by $20/gt to $289/gt delivered amid elevated feedstock buying for processing ahead of higher prices for finished material.