US East Coast and Houston dock collection prices for ferrous scrap continued to increase as supply tightens amid strong export and domestic market strength.

 

Export yard buying prices for #1 HMS on the East Coast ranged between $270-280/gt on Tuesday, rising by an average of $16-21/gt since last week and by about $30-40/gt since Nov 10. More substantial export yard price increases were expected by now. However, #1 HMS should gradually approach $300/gt or more shortly, which would correlate better with the overall market dynamics.

 

Exports to Turkey from the US were priced at around $380/mt cfr on Tuesday for HMS 1&2 (80:20) compared with $340-345/mt cfr for the material on Nov 24, representing a rise in exports of about $35-40/mt for the grade over the past two weeks and up about $87/mt since late October. 

 

Further offers from the US to Turkey for HMS 1&2 (80:20) are pegged at $5/mt or more above Tuesday’s levels on pricing momentum amid limited scrap availability. Domestic scrap trading is finalizing across the US with price gains of $55-90/gt or more, depending on grade and location compared to November, also contributing to the bullish market sentiment. 

 

In Boston, the weekly Davis Index for export yard #1 HMS climbed by $18/gt to $278/gt and P&S 5ft jumped by $16/gt to $286/gt, delivered Boston dock. Shredder feed rose by $2/gt to $194/gt delivered Boston export yard. 

 

The weekly Davis Index for export yard buying prices in New York rose by $20/gt to $279/gt delivered for #1 HMS and $21/gt to $289/gt delivered dock for P&S 5ft. The index for shredder feed increased by $7/gt to $221/gt delivered. 

 

Price surges were observed in shredder feed last week compared to other grades in response to demand and availability of the material, however, the increases tapered off on Tuesday. 

 

Other materials, such as #1 HMS and P&S 5ft showed modest increases last week as prior orders were still being fulfilled. On Tuesday, higher gains were received on #1 HMS and P&S 5ft as projected, following last week’s trend in shredder feed, as new, higher priced deals between the US and Turkey continued.

 

In Philadelphia, the Davis Index for export yard collection prices of #1 HMS increased by $18/gt to $276/gt delivered and P&S 5ft went up by $16/gt to $285/gt delivered Philadelphia dock. The index for shredder feed ticked up by $4/gt to $220/gt delivered.  

 

In Houston, the weekly Davis Index climbed by $18/gt for #1 HMS and $14/gt for P&S 5ft to $313/gt delivered and $325/gt delivered Houston dock, respectively. The shredder feed index increased by $21/gt to $245/gt delivered.

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