US East Coast and Houston dock collection prices for ferrous scrap continued to rise this week, amid healthy market sentiment, however, the industry quietly awaits significant price increases that are expected to transpire over the next week.
Export yard buying prices for #1 HMS on the East Coast averaged $365-375/gt for local tons on Tuesday, rising by about $15-20/gt for most sellers since last week, however, bigger short term price jumps are anticipated as export activity picks up again.
Pricing for #1 HMS encompasses a full range of $355-400/gt at some East Coast dock locations. Sources believe East Coast docks will soon pay $400/gt and up for #1 HMS, based on the latest sales as well as upcoming export expectations, such as Turkish needs that are still unfulfilled for February bookings.
Domestic activity is also driving strong sentiment as scrap trading for January will commence shortly with a general outlook of $80/gt and above in anticipated price gains above December’s settlements.
Export prices to Turkey from the US for HMS 1&2 (80:20) have tapered off in the past week standing at $481.25/mt cfr on Tuesday. This level represents an increase of $9/mt since last week. However, the price has risen by about $122/mt since December 1, 2020, and docks have not fully matched the full expansion yet.
In Boston, the weekly Davis Index for export yard #1 HMS climbed by $15/gt to $364/gt and P&S 5ft jumped by $16/gt to $375/gt, delivered Boston dock. Shredder feed rose by $15/gt to $255/gt delivered.
The weekly Davis Index for export yard buying prices in New York rose by $21/gt to $375/gt delivered for #1 HMS and by $22/gt to $385/gt delivered dock for P&S 5ft. The index for shredder feed increased by $7/gt to $260/gt delivered.
In Philadelphia, the Davis Index for export yard collection prices of #1 HMS increased by $17/gt to $373/gt delivered and P&S 5ft went up by $20/gt to $385/gt delivered Philadelphia dock. The index for shredder feed rose by $11/gt to $258/gt delivered.
The weekly Davis Index in Houston moved up by $20/gt for #1 HMS and P&S 5ft to $370/gt delivered and $390/gt delivered Houston dock, respectively. The shredder feed index increased by $5/gt to $294/gt delivered.
Inventory is tightening as sellers opt to hold material from many dockside locations until they receive more clarity on January domestic options.