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

US containerized ferrous scrap prices trended rangebound across both coasts on Thursday with some gains on better grades in Los Angeles.  


The latest US-origin import scrap deal to Turkey shifted the US-origin HMS 1&2 (80:20) index down further by $7.40/mt to $463.48/mt on Thursday from $470.88/mt cfr on Jul 29. US domestic ferrous scrap is trading this week sideways to down $20/gt on primes such as #1 busheling depending on region and mostly down $20/gt on secondary cut grades. 


The New York weekly Davis Indexes trended mostly sideways after facing declines of $14-19/mt last week. Buyers who purchased at lower levels than the indexed prices met resistance, moving transactions up by $5/mt against last week’s levels. Some sellers did not transact given early deals in August that are now requiring fulfillment. Several noted offers today at $30-40/mt compared to transactions they successfully concluded about three weeks ago.


The index for #1 busheling stayed at $490/mt fas New York port, HMS 1&2 (80:20) remained at $443/mt fas, P&S 5ft trended flat at $466/mt fas along with shredded at $463/mt fas. Machine turnings decreased by $3/mt to $416/mt fas.  


The weekly Davis Indexes in Los Angeles encountered transactions near last week’s levels but offers on better grades improved. Some sellers also provided short-term discounts, especially, on HMS 1&2 (80:20). After falling for three successive weeks, the indexes met some gains and only HMS 1&2 (80:20) fell by $1/mt to $393/mt fas. The index for #1 busheling rose by $7/mt to $432/mt fas, P&S 5ft grew by $5/mt to $425/mt fas, and shredded climbed by $4/mt to $425/mt fas. Market participants increased offers on the better grades but it is yet uncertain whether buyers will transact at those higher levels. 


Market participants note that export transactions are low given the continued difficulty in obtaining containers and ever-increasing freight rates. The higher freight rates are making it difficult for trades in containerized scrap. Several stated that shipping domestically is becoming more attractive, especially, given the strong domestic prices and foreseeable demand by mills in Q3 and Q4. Mexican mills are reported seeking ferrous scrap containers and are offering $10-20/mt higher on loads compared to Asian buyers.


The San Francisco Davis Indexes rose by $1/mt on #1 busheling to $426/mt fas. HMS 1&2 (80:20) fell by $1/mt to $388/mt fas as P&S 5ft and shredded trended flat at $419/mt and $420/mt fas, respectively.


In Seattle, containerized ferrous prices remained rangebound after falling by $6-8/mt in the prior week. The Davis Index for #1 busheling was unchanged at $420/mt fas as HMS 1&2 (80:20) fell by $1/mt to $384/mt fas. P&S 5ft rose by $2/mt to $418/mt fas as shredded increased by $1/mt to $419/mt fas.

Leave a Reply

Your email address will not be published.