US East Coast dock collection prices for ferrous scrap declined by $5-12/gt, and Houston dock collection prices remained unchanged for all grades and dock locations, following weakening export demand along with market silence.
Several export destinations reported low steel and scrap demand with domestic inventories already booked amid ample supply, which will likely continue through July. Collection prices have declined for the past two weeks because export activity has been sluggish since mid-June.
East Coast docks have lowered collection prices by about $20/gt since June 16, with deals ranging between $195-205/gt for local HMS 1&2 (80:20) on June 30. US bids for Turkish imports of HMS 1&2 (80:20) were around $245-255/mt cfr compared to $260/mt cfr on June 9, when docks were paying $215-220/gt for the grade. Sellers didn’t confirm that business concluded at those levels on Tuesday.
Market participants believe East Coast dock collection prices will tumble another $10/gt to $190/gt for HMS 1&2 (80:20) either late this week or by next week. Domestically, raised amounts of scrap have overhung the market, as sellers have tried placing tons, albeit with little success since early June.
In Boston, the weekly Davis Index for export yard HMS 1&2 (80:20) decreased by $9/gt from $211/gt to $202/gt delivered dock, while the index for P&S 5ft dropped by $8/gt from $221/gt to $213/gt delivered Boston dock. The index for shredder feed decreased by $6/gt from $158/gt to $152/gt delivered.
The weekly Davis Indexes for export yard buying prices in New York for HMS 1&2 (80:20) decreased by $12/gt from $211/gt to $199/gt delivered on Tuesday, and declined by $9/gt from $220/gt to $211/gt delivered New York dock for P&S 5ft. The index for shredder feed dropped by $6/gt from $164/gt to $158/gt delivered.
In Philadelphia, the index for export yard collection prices of HMS 1&2 (80:20) decreased by $10/gt from $213/gt to $203/gt delivered. The Davis Index for P&S 5ft dropped by $11/gt from $222/gt to $211/gt delivered Philadelphia dock, and the Davis Index dropped by $5/gt from $163/gt to $158/gt delivered for shredder feed.
Weekly Davis Indexes in Houston remained flat for HMS 1&2 (80:20) at $218/gt delivered. P&S stayed was unchanged at $228/gt delivered, while the index for shredder feed remained at $163/gt delivered.