US East Coast collection prices for ferrous scrap continued to soften with a further downside this week. However, Houston dock prices crashed on oversupply, problems with transportation, and the impact of Hurricane Ida.
Domestic trading is finalizing early this week as well with declines in tandem with export and dock activity.
Current dockside sales on the East Coast for #1 HMS are reported in the range of $320-355/gt per dock location and base sales price. However, another $10/gt drop is possible within the next week. Overall, the grade has fallen around $15/gt average versus dockside levels from one month ago with divergence per dock and base price.
The Davis Index for US HMS 1&2 (80:20) exports to Turkey was down by around $3/mt at $444.77/mt cfr on Tuesday compared to $447.76/mt cfr on Aug 31. Monthly views show prices for this export grade have dropped by $17.17/mt compared to $461.94/mt cfr on Aug 10.
In Boston, prices remain under alternative East Coast yard levels. The weekly Davis Index for export yard #1 HMS fell by $4/gt to $335/gt delivered and P&S 5ft declined by $3/gt to $346/gt delivered Boston dock. The shredder feed index ticked down by $4/gt to $235/gt delivered Boston export yard.
The weekly Davis Index for export yard buying prices in New York decreased by $3/gt for both #1 HMS and P&S 5ft to $345/gt delivered and $355/gt delivered, respectively. Shredder feed dropped by $5/gt to $273/gt delivered New York dock.
In Philadelphia, the Davis Index for export yard collection prices fell by $4/gt for #1 HMS to $343/gt delivered and P&S 5ft inched down by $2/gt to $354/gt delivered Philadelphia dock. The index for shredder feed moved down by $3/gt to $275/gt delivered.
In Houston, the weekly Davis Index declined by $47/gt for #1 HMS to $321/gt delivered while P&S 5ft dropped by $25/gt to $379/gt delivered. The index for shredder feed fell by $15/gt to $262/gt delivered Houston dock.
Houston area participants cite several issues that have led to price changes including oversupply, transportation hindrances, lack of barge availability and the effects of Hurricane Ida. Several force majeures are enacted at Nola adding to the chaos.