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

US containerized ferrous scrap export prices fell for the second successive week on Thursday amid diminishing bids in Turkey and Asia and deals at lower prices in the bulk and containers market. The shakeup began last week with a drop in iron ore prices and uncertainty on how or whether China will continue steel production suspensions on environmental concerns. 


Containerized ferrous scrap transactions continue being affected by container shortage and higher freight prices. As a result, large buyers are preferring bulk deals over containers. 


The Asian region is dealing with many uncertainties beyond the economic and trading effects from China. In India, some regions are concerned about potential increases in COVID-19 cases, which may result in stricter restrictions that could affect construction projects and consumer purchases. In Japan, Tokyo Steel has decreased its domestic ferrous scrap buying prices, which will place pressure on exporters to further discount container prices. Other Asian buyers in Taiwan and South Korea limited containerized buying activity this week. 


The West Coast is witnessing limited trades and, in some cases, buyers not providing quotes. Still, some exporters are resisting lower bids anticipating an increase in HMS 1&2 (80:20) prices to $450-455/mt cfr Turkey, noting that Turkish mills still need some April shipments and may require ample volumes for May shipments. They hope this may lift global activity and prices despite the slow recovery in finished steel demand.  


The weekly Davis Indexes for containerized scrap in New York dropped by $18-27/mt on Thursday with #1 busheling and P&S 5ft falling by $18/mt to $429/mt fas and $406/mt fas, respectively. The index for HMS 1&2 (80:20) declined by $22/mt to $379/mt fas while shredded decreased by $20/mt to $402/mt fas. Machine turnings dropped by $27/mt to $336/mt fas as buyer interest dwindled. 


In Los Angeles, the weekly Davis Indexes fell by $19/mt across all grades after decreasing by $20-24/mt in the prior week. The index for #1 busheling, HMS 1&2 (80:20), P&S 5ft, and shredded all dropped by $19/mt to $376/mt fas, $353/mt fas, $369/mt fas, and $369/mt fas, respectively. HMS 1&2 (80:20) and the better grades are trending at about a $15/mt spread, far tighter than the $20-30/gt achieved earlier in 2021. The latest bids being received by sellers at the end of Thursday are in the range of $340-350/mt fas.


San Francisco’s weekly indexes fell by an additional $12-18/mt this week. The index for #1 busheling shrank by $18/mt to $375/mt fas, while HMS 1&2 (80:20) and shredded both fell by $15/mt to $350/mt and $365/mt fas, respectively. 


In Seattle, the Davis Indexes decreased by $15-20/mt. The index for #1 busheling dropped by $15/mt to $383/mt fas as HMS 1&2 (80:20) fell by $20/mt to $353/mt fas. P&S 5ft index decreased by $18/mt to $370/mt fas and shredded declined by $17/mt to $368/mt fas.

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