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

US containerized ferrous scrap indexes increased on the West Coast for the fifth consecutive week, while it rose on the East Coast for a third-straight week after a brief lull early last month.


On the East Coast, sellers received consistent inquiries from Asian buyers for containers, with a particular interest in higher grades. Inflows into scrap yards in the region are below difficult June and July intake levels. With continued social distancing and stay-at-home orders, along with overall economic uncertainty from COVID-19, scrap yards received fewer consumer goods, reported fewer cars being shredded, and processed fewer obsolete grades from demolition projects. 


With competing demand in the region for scrap to meet more vessel purchases this month and September shipments to Turkey, sellers anticipate containerized prices to rise $5-10/mt over the next few weeks. Turkish buying prices have already peaked, said some market participants, while others predict limited $5/mt increases on bulk import prices to Turkey. 


The weekly Davis Index in New York for #1 busheling increased by $6/mt to $275/mt fas, while HMS 1&2 (80:20) increased by $11/mt to $258/mt fas. The index for P&S 5ft rose by $6/mt to $273/mt fas, as shredded increased by $5/mt to $272/mt fas. The index for machine shop turnings rose by $21/mt to $230/mt fas.


Export activity is expected to support containerized prices on the West Coast through this month. Inquiries have continued, but brokers reported hesitation from buyers for anything higher than $240-245/mt fas on HMS 1&2 (80:20). Sellers reported high demand and limited inventories, which brought prices up. A buyer reported having to incorporate higher freight costs to bring containers to ports in Seattle and the San Francisco area. 


Indian scrap import price increases, tighter domestic supplies, higher prices at destination countries, higher Japanese scrap export prices, and active inquiries from Bangladesh, Pakistan, and other Asian destinations, are supporting US export scrap prices.


The weekly Davis Index in Los Angeles for #1 busheling increased by $11/mt to $266/mt fas. The index for HMS 1&2 (80:20) increased by $6/mt to $241/mt fas. P&S 5ft and shredded both rose by $11/mt and $13/mt to $263/mt fas and $265/mt fas, respectively. P&S 5ft and shredded scrap increased in the region, as buyers and docks sought better grades. The largest dock in Los Angeles actively sought inventories of P&S 5ft, possibly to satisfy bulk commitments. Busheling was actively sought by brokers for container loads.


The Davis Indexes in San Francisco ticked up as #1 busheling increased by $7/mt to $250/mt fas and HMS 1&2 (80:20) increased by $6/mt to $235/mt fas. The indexes for P&S 5ft and shredded both against went up by $10/mt to $250/mt fas and $250/mt fas, respectively.


The weekly Davis Indexes in Seattle also increased, as the index for #1 busheling rose by $12/mt to $255/mt fas, HMS 1&2 (80:20) increased by $9/mt to $235/mt fas, P&S5ft rose by $10/mt to $253/mt fas, and shredded also rose by $10/mt to $253/mt fas.



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