Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Ferrous scrap trading concluded by Friday with prices ranging from up $20-30/gt and sideways, to down $20-30/gt depending on grade, region, timing, mill requirements, and export influence. The widest month-over-month change developed in Northern and Southern or Coastal markets during the August trading week.


The early Detroit offers of down $20/gt on primes and no change on cuts and shredded against July settled prices were generally accepted early in the week. Other regions faced resistance to the sideways attempt on cuts and shredded. 


However, the East Coast and the Carolinas encountered the largest price gains on cuts and shredded with prices increasing by $25-30/gt and $20-25/gt, respectively. Prime grades, though, remained mostly sideways. The South primarily encountered an increase on cuts and shredded of $10/gt with prime grades also trending sideways, although, depending on region some prime grades deals declined by up to $10/gt compared to last month’s deals.


Overall, the trades in August went better than originally expected and deal prices benefitted those that waited. The same prices purchased in Detroit, Chicago, and elsewhere early in the week are no longer available. 


Multiple mills and brokers circled back towards the end of the day yesterday with buyers just in case inventories remained. Brokers were looking for export, including barges going out via New Orleans.


At this moment, it is difficult to report an uptick for September prices despite positive sentiment, due to the sustainability of exports given the uncertainty from the COVID-19 pandemic in Asian markets as well as domestically. 


Domestic mills are slowly incrementing capacity, but finished steel sales both in flats and longs must strengthen. Most scrap yard sellers reported a positive expectation for the early September scrap week with reservations on “too many variables that could change.”


In Chicago P&S 5ft sold between $230-250/gt delivered, gaining about $11/gt to settle at $239/gt delivered. Shredded went for $235-250/gt delivered, in some cases higher, and finalized at $241/gt delivered, an increase of $12/gt from July settlements. #1 busheling sold at $260-270/gt delivered, declining by $10/gt to settle at $265/gt delivered.


In Philadelphia, the Davis Index for #1 busheling increased by $11/gt to $250/gt delivered with deals ranging from $245-260/gt delivered for the grade. The Davis Index for shredded rose by $29/gt to $258/gt delivered with gains attributed to export prices and activity.


In the Carolinas, the David Index for HMS1&2 (80:20) increased by $22/gt to $245/gt delivered while shredded rose by $22/gt to $267/gt delivered. P&S 5ft went up by $23/gt to $259/gt delivered. In other areas of the Southeast shredded scrap was reported on Friday at up to $280/gt delivered. 


Panning south to Texas, the Houston Davis Index for HMS1&2 (80:20) increased by $11/gt to $245/gt delivered while busheling decreased by $3/gt to $284/gt delivered. The P&S 5ft index increased by $11/gt to $265/gt while shredded index increased by $12/gt to $269/gt delivered.

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