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

US containerized ferrous scrap prices increased for the third successive week in some markets on Thursday as low availability of containers and high freight costs continued to impact the markets on both coasts. 


Higher-priced transactions were reported earlier in the week but buyers began resisting those price levels by Thursday. Still, several market participants on the East Coast noted good demand levels and the possibility of continued increases over the next few weeks as May approaches. 


On the West Coast, opinions were mixed with some feeling that prices may have hit a temporary high point, while others expected a further increase. Japanese export scrap offers remained strong and Asian buyers are pursuing US-sourced scrap inventories. 


In New York, the weekly Davis Indexes for #1 busheling declined by $6/mt to $433/mt fas while HMS 1&2 (80:20) trended flat at $387/mt fas. Deals fluctuated with some prices increasing by $5/mt while others dropped, which resulted in a net unchanged status. The shredded index also remained unchanged at $410/mt fas while P&S 5ft rose by $1/mt to $411/mt fas. Machine turnings increased by $3/mt to $363/mt fas.


The weekly Los Angeles containerized scrap indexes climbed by $7-12/mt after gains of about 20-30/mt in the past two weeks. The index for #1 busheling rose by $7/mt to $404/mt fas, HMS 1&2 (80:20) climbed by $8/mt to $376/mt fas while P&S 5ft increased by $10/mt to and $400/mt fas. Shredded scrap also climbed by $12/mt to $401/mt fas. Some buying mills in Taiwan are reducing cfr price levels and are placing downward pressure on price gains. 


In San Francisco, the weekly indexes gained by $10/mt over last week. The index for #1 busheling remained unchanged at $393/mt fas as buyers reduced interest in higher grades. HMS 1&2 (80:20) rose by $7/mt to $366/mt fas. P&S 5ft climbed by $6/mt to $386/mt fas and shredded rose higher by $10/mt to $385/mt fas. 


The Seattle Davis Indexes remained mostly rangebound. The #1 busheling index slipped by $2/mt to $391/mt fas while HMS 1&2 (80:20) was unchanged at $365/mt fas. P&S 5ft and shredded climbed by $1/mt to $386/mt fas and $384/mt fas, respectively.

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