The weekly US East Coast and Houston dock collection prices for ferrous scrap slipped by $20-25/gt. The drop marks the first price decline following 10 weeks of growth on strong export activity and healthy domestic markets.

 

This week, the ferrous export market lost some momentum as export destination buyers have been less active and lowered their bids. Domestically, scrap flows into yards strengthened, allowing mills to obtain necessary material without much difficulty. However, some industry participants remain hopeful as mill demand continues to be strong, which may somewhat temper the potential, imminent downtrend. 

 

Dock prices began their healthy ascent on November 10, 2020 when #1 HMS was priced at $239/gt delivered Philadelphia export yard. Prices for this grade were incrementally raised by $165/gt to reach $404/gt delivered on Jan 12. 

 

Export yard buying prices for #1 HMS on the East Coast averaged around $375-380/gt for local tons on Tuesday declining by $20/gt or more for most sellers since last week and covering a full range of deals between $360-395/gt. 

 

Higher ranged prices were reported by sellers that continue fulfilling tonnages on older orders, while bulk exporters cut prices on new ones to the lower end of the range by Tuesday. Sellers may see further price drops of $10-20/gt at the docks in the near term.

 

Export prices to Turkey from the US for HMS 1&2 (80:20) have been tapering off since the first week of January and dropped by $32.11/mt in eight days to $450/mt cfr on Jan 19 compared to $482.11/mt cfr on Jan 11.

 

In Boston, the weekly Davis Index for export yard fell by $24/gt to $377/gt delivered for #1 HMS, by $22/gt to $388/gt delivered Boston dock for P&S 5ft, and by $21/gt to $273/gt delivered for shredder feed. 

 

The weekly Davis Index for export yard buying prices in New York moved down by $29/gt to $379/gt delivered for #1 HMS and $27/gt to $390/gt delivered dock for P&S 5ft. The index for shredder feed declined by $26/gt to $274/gt delivered. 

 

In Philadelphia, the Davis Index for export yard collection prices dropped for #1 HMS by $25/gt to $379/gt delivered, for P&S 5ft by $27/gt to $388/gt delivered Philadelphia dock, and for shredder feed by $25/gt to $273/gt delivered.

 

In Houston, the weekly Davis Index decreased by $22/gt for #1 HMS to $358/gt while P&S 5ft moved down by $23/gt to $375/gt delivered Houston dock. The shredder feed index dropped by $17/gt to $283/gt delivered.

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