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

US containerized ferrous scrap prices corrected from the upward West Coast trend last week and were rangebound on the East Coast as both coasts saw declining indexes on softer market sentiment on Thursday. 


Expectations for the US domestic scrap market has trended from sideways on secondary grades in June to an anticipated decline of $20-30/gt in August trading against recent early July trading settled prices. The US domestic scrap market began trading this week with mills trending at up $20/gt on prime grades such as #1 busheling and sideways on secondary grades against the June settled prices. 


The weekly Davis Indexes in New York for #1 busheling dropped by $7/mt to $506/mt fas as HMS 1&2 (80:20) declined by $6/mt to $461/mt fas. Machine turnings fell by $8/mt to $426/mt fas, after trending flat the prior week. P&S 5ft and shredded dropped by $4/mt to $488/mt fas and $484/mt fas, respectively. 


Sellers continue to find buyers dealing around $490-500/mt on shredded and P&S 5ft as the domestic trading subsided late last week but this week, some of those sales would be difficult to replicate. Indian buyers are limiting their import bidding activity on slow steel demand as Pakistan and Bangladesh. Buyers are also slowing purchases for mill use due to the upcoming Eid holiday.  


In Los Angeles, the indexes for #1 busheling fell by $3/mt to $442 fas while P&S 5ft declined by $7/mt fas to $433/mt fas. HMS 1&2 (80:20) and shredded both eroded by $5/mt to $409/mt fas and $436/mt fas. 


Sellers report the market softening and a downward short-term trend of another $5-10/mt in the coming week. A large dock in LA is likely to drop dock prices after having raised in the past week on lower pricing expectations. 


Buyers in Indonesia, Taiwan, and Vietnam are being affected by slow steel demand, which in some cases is being influenced by lockdowns due to ongoing COVID-19 outbreaks. 


Japanese ferrous domestic scrap prices are trending flat, limiting export price offers but some market participants anticipate that these mills may adjust prices if their export markets are inactive due to limited trading activity. 


San Francisco’s indexes declined after two successive weeks of increase. #1 busheling declined by $3/mt to $438/mt fas and HMS 1&2 (80:20) fell by $6/mt to $405/mt fas. P&S 5ft and shredded both lost last week’s gains with a decline of $5/mt to $430/mt fas each.


In Seattle, prices fell by $5/mt across all grades with the weekly Davis Index for #1 busheling, HMS 1&2 (80:20), P&S 5ft, and shredded at $430/mt fas, $400/mt fas, and $426/mt fas and $427/mt fas, respectively.


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