US East Coast and Houston dock prices for ferrous scrap have gradually increased by about $20-25/gt since mid-July amid strengthening exports.
Ferrous scrap demand on the East Coast has been increasingly converging with material supply levels—indicative of improved balance.
East Coast dock collection prices were around $220-225/gt on Tuesday for most HMS 1&2 (80:20) tonnage, modestly increasing from $215-220/gt on August 11. However, some dock locations were paying as high as $230/gt for the grade, albeit based on requirement.
Some market participants anticipate prices rising over the next month, and believe demand is going to begin outpacing supply, representing a shift from lower purchase requirements two months ago. However, this is contingent on forthcoming scrap flow and assumed continuation of rising mill operating rates, which have been in the low-60pc range.
In Boston, the weekly Davis Index for export yard HMS 1&2 (80:20) increased by $3/gt to $222/gt delivered dock, while the index for P&S 5ft increased by $2/gt to $231/gt delivered Boston dock, and the shredder feed index rose by $6/gt to $170/gt delivered.
The weekly Davis Index for export yard buying prices in New York increased by $2/gt to $221/gt delivered for HMS 1&2 (80:20). P&S 5ft rose by $3/gt to $231/gt delivered dock, and the shredder feed index moved up by $4/gt to $176/gt delivered.
In Philadelphia, the Davis index for export yard collection prices of HMS 1&2 (80:20) increased by $5/gt to $223/gt delivered Philadelphia dock, while P&S 5ft increased by $5/gt to $233/gt delivered Philadelphia dock. The index for shredder feed rose by $3/gt to $174/gt delivered.
The weekly Davis Indexes in Houston grew by $3/gt for HMS 1&2 (80:20) and P&S 5ft to $228/gt delivered and $238/gt delivered, respectively, while the shredder feed index increased by $2/gt to $170/gt delivered.