US East Coast and Houston dock collection prices for ferrous scrap continued to rise on tightening supply, healthy export activity, and increasing domestic scrap prices.
Sellers to the docks have witnessed larger price escalations since the start of December. Export yard buying prices for #1 HMS on the East Coast averaged between $320-335/gt on Tuesday with anomalies as high as $350/gt and as low as $300/gt. Increases have moved by at least $30-35/gt since last week and are up by about $50-60/gt since Dec 8.
Bulk exporters are recognizing that further increases will likely need to be implemented by the end of this week with more significant booms over the next few weeks. Price points for #1 HMS are anticipated to reach $400/gt within the foreseeable future.
Overall demand is outpacing supply as US-origin HMS 1&2 (80:20) was priced at around $470/mt cfr Turkey on Tuesday. This level is up $43/mt from $427/mt cfr on Dec 15 and has increased by about $94/mt since Dec 8.
In Boston, the weekly Davis Index for export yard #1 HMS climbed by $32/gt to $327/gt and P&S 5ft jumped by $31/gt to $336/gt, delivered Boston dock. Shredder feed rose by $23/gt to $223/gt delivered.
The weekly Davis Index for export yard buying prices in New York rose by $35/gt to $329/gt delivered for #1 HMS and $33/gt to $338/gt delivered dock for P&S 5ft. The index for shredder feed increased by $19/gt to $242/gt delivered.
In Philadelphia, the Davis Index for export yard collection prices of #1 HMS increased by $35/gt to $328/gt delivered, while P&S 5ft went up by $34/gt to $338/gt delivered Philadelphia dock. The index for shredder feed rose by $13/gt to $233/gt delivered.
In Houston, the weekly Davis Index climbed by $12/gt for #1 HMS and P&S 5ft to $350/gt delivered and $370/gt delivered Houston dock, respectively. The shredder feed index increased by $11/gt to $269/gt delivered.