US East Coast dock collection prices for ferrous scrap increased by about $7-14/gt amid improved demand from Turkey for US-origin cargos. This is the second week of price increases as scrap exports have seen a recent recovery of $20-30/mt since domestic prices settled in early February.

 

In Boston, the weekly Davis Index for export yard HMS 1&2 (80:20) increased by $14/gt from $211/gt to $225/gt delivered dock, on Tuesday. The index for P&S 5ft rose by $14/gt from $221/gt to $235/gt delivered Boston dock while the index for shredder feed rose by $10/gt from $150/gt to $160/gt delivered. 

 

The weekly Davis Index for export yard buying prices in New York for HMS 1&2 (80:20) increased by $10/gt from $214/gt to $224/gt delivered on Tuesday and rose by $10/gt from $224/gt to $234/gt delivered New York dock for P&S 5ft. The index for shredder feed increased by $7/gt from $153/gt to $160/gt delivered. 

 

In Philadelphia, the index for export yard collection prices of HMS 1&2 (80:20) rose by $10/gt from $211/gt to $221/gt delivered and by $10/gt from $221/gt to $231/gt delivered Philadelphia dock for P&S 5ft. The Davis Index for shredder feed rose by $14/gt from $154/gt to $168/gt delivered. 

 

Shredder feed is in short supply at some dock locations, especially Philadelphia, boosting prices for the grade a bit more in that region. HMS 1&2 (80:20)—which ranged between $210/gt and $230/gt—increased by $5-10/gt compared to last week, based on prior sales and dock location.

 

Supply is tight while exports continue to pick up and both these factors are contributing to an uptick in prices. Some market participants have indicated they are not selling to the East Coast docks at this time but await the March trade that will begin next week. 

 

Domestic demand is expected to remain strong and some mills have indicated they will have healthy programs in March. Prices are expected to remain flat or increase up to $20/gt during the upcoming trade.

Leave a Reply

Your email address will not be published.