US East Coast collection prices for ferrous scrap declined though the dips were milder this week, while Houston docks experienced steeper declines on weak exports and soft domestic markets. 

 

Scrap has been in ample supply in several markets during the summer months on rising intake flows into scrapyards, which has impeded price growth over the past month. Relatedly, domestic trading for August wrapped up with softening prices and reduced mill buying, especially near the East Coast.

 

Exports have been waning although the drop decelerated this week. The Davis Index for US HMS 1&2 (80:20) cfr Turkey was down $1.66/mt at $461.94/mt cfr on Tuesday compared to $463.60/mt cfr on Aug 3. The monthly view shows prices for this export grade have decreased by $22.95/mt on Tuesday against $484.89/mt cfr for the export material on Jul 13. 

 

Dockside prices have been trickling downward since late June along with the expectation that they will remain weak in the short term. Still, market participants do not foresee imminent, sizable dockside price decay. 

 

Sales for #1 HMS on the East Coast fell by around $5/gt, comparable to the past three weeks, and range from $340-365/gt per dock location and prior sales level. The grade is down approximately $25-30/gt versus the range of $365-395/gt one month ago.

 

In Boston, prices remain weaker than other docks in the vicinity. The weekly Davis Index for export yard #1 HMS fell by $5/gt to $353/gt delivered Boston dock and P&S 5ft decreased by $4/gt to $363/gt delivered. The shredder feed index fell by $7/gt to $243/gt delivered Boston export yard. 

 

The weekly Davis Index for export yard buying prices in New York decreased by $3/gt for #1 HMS to $359/gt delivered, P&S 5ft fell by $4/gt to $369/gt, and shredder feed held unchanged at $270/gt delivered New York dock. 

 

Philadelphia’s Davis Index for export yard collection prices moved down by $2/gt for #1 HMS to $361/gt delivered and P&S 5ft fell by $3/gt to $371/gt delivered Philadelphia dock. The index for shredder feed trended flat though with a $1/gt uptick to $270/gt delivered. 

 

In Houston, the weekly Davis Index decreased by $28/gt for #1 HMS to $388/gt delivered while P&S 5ft and shredded both slipped by $21/gt to $424/gt and $293/gt delivered Houston dock, respectively. Area participants noted dock prices are generally down about $20/gt since last week in tandem with recent domestic trading.

 

Leave a Reply

Your email address will not be published.