US East Coast dock collection prices for ferrous scrap declined by $8-10/gt across most grades and dock locations, following a second week of slow activity in Turkey.
In Boston, the weekly Davis Index for export yard HMS 1&2 (80:20) dropped by $9/gt to $216/gt delivered dock on Tuesday. The index for P&S 5ft declined by $9/gt to $226/gt delivered Boston dock while it move down for shredder feed by $2/gt to $158/gt delivered.
The index for export yard buying prices in New York for HMS 1&2 (80:20) declined by $8/gt to $216/gt delivered on Tuesday. The Davis Index for P&S 5ft decreased by $8/gt to $226/gt delivered New York dock and dropped by $8/gt for shredder feed to $158/gt delivered.
In Philadelphia, the Davis Index for export yard collection prices for HMS 1&2 (80:20) dropped by $10/gt to $213/gt delivered. The indexes for P&S 5ft decreased by $10/gt to $223/gt delivered Philadelphia dock and dropped by $10/gt for shredder feed to $158/gt delivered.
HMS 1&2 (80:20) prices on the East Coast ranged from $205-230/gt, decreasing by $10/gt, compared to last week, based on prior sales and dock location. However, dock collection prices are expected to be lowered by another $10/gt later this week.
Davis Index was informed that docks are looking for material and seeking lower prices to match export pricing. Material is tight and some scrap tons are still being sold at March 3, 2020 levels. However there have only been a small number of confirmed sales at $220/gt or above for HMS 1&2 (80:20).
Domestic scrap demand was strong early last week as several mills had larger buying programs compared to February. The ferrous scrap trade was expected to see price increases of $10-20/gt during March trade but declines in export prices and demand dampened market sentiment mid-trade with prices ultimately settling at flat to $10/gt increases for some prime grades.
Limited container availability also impacted market weakness during the week, as exporters that usually rely on containerized sales shifted tonnage to the domestic market. Davis Index was informed that considerable amounts of material were offered into the market, above original projections, as many sense April will be a weaker market. Earlier reports indicated that material was tight, however some tons were left overhanging in the market, which also contributed to declining sentiment.