US East Coast and Houston dock collection prices for ferrous scrap remained on a downward trajectory for the third straight week, falling by about $30/gt, in line with declining export prices and lowered price estimations in the domestic market.
Domestic scrap trading in the US for the new calendar month will commence this week with prices slated to decline by $50/gt for certain secondary grades over January’s settlements.
Export prices to Turkey from the US for HMS 1&2 (80:20) have consistently fallen since the first week of January and decreased by $16.05/mt in one week to $398.75/mt cfr on Tuesday. Prices in Turkey have dropped by $83.36/mt since their peak of $482.11/mt cfr on Jan 11.
Export yard buying prices for #1 HMS on the East Coast are averaging near $310-315/gt, with some export yards asking as low as $300-305/gt for local tons on Tuesday. Price drops tally at around $25-30/gt or more for most sellers since last week and involves a full range of deals between $300-330/gt.
Industry participants believe additional declines may ensue later this week, though sellers reporting from the lower end of the price range do not foresee further, near-term price adjustments. East Coast dockside values have fallen by around $90/gt since Jan 12 when #1 HMS was at $404/gt delivered Philadelphia.
In Boston, the weekly Davis Index for export yard #1 HMS fell by $29/gt to $310/gt and P&S 5ft dropped by $30/gt to $321/gt, delivered Boston dock. Shredder feed declined by $33/gt to $210/gt delivered Boston export yard.
Shredder feed was transacting at levels as low at $200/gt delivered East Coast dock for new deals on Tuesday. Some sellers assert they are retaining material in hopes of new, improved pricing after February’s lowered-prospect trade concludes.
The weekly Davis Index for export yard buying prices in New York moved down by $28/gt to $312/gt delivered for #1 HMS and by $29/gt to $321/gt delivered dock for P&S 5ft. The index for shredder feed declined by $35/gt to $211/gt delivered.
In Philadelphia, the Davis Index for export yard collection prices of #1 HMS dropped by $29/gt to $313/gt delivered and P&S 5ft went down by $30/gt to $323/gt delivered Philadelphia dock. The index for shredder feed fell by $32/gt to $213/gt delivered.
In Houston, the weekly Davis Index decreased by $19/gt for #1 HMS and P&S 5ft to $325/gt delivered and $335/gt delivered Houston dock, respectively. Shredder feed dropped by $24/gt to $241/gt delivered.