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

US containerized scrap prices continue to trend up as November ends. Tight scrap inventories continue pushing up Turkey’s import scrap prices, which are used as a barometer that influences global scrap sentiment. The latest Turkish Davis Index of HMS 1&2 (80:20) at $346.30/mt cfr is $52.30 higher compared to Nov 2.


Japanese export scrap offers continue climbing on global cues and firmer domestic scrap prices. Thus, higher export offers from Japan to Asian buyers will continue supporting US export prices.


The elevated import prices have made buyers hesitate before striking deals. In Pakistan, despite weak finished steel demand the lack of scrap may force importers to return to seek import volumes. In Bangladesh, buyers continue importing scrap due to scarce domestic scrap resources and higher domestic billet prices, though consumer demand remains weak. India is encountering higher domestic scrap and sponge iron prices, making buyers from that destination turn to imports.


South Korean mills are reporting adequate scrap inventories and prefer domestic material given the higher import prices. Taiwanese buyers have also limited import scrap buys due to higher freight prices and limited container availability, opting instead for domestic scrap. In fact, one buyer noted that some mills have put a hold on export transactions due to uncertainty in freights that could be wide at $200-1,000/container from the US West Coast in December.


In the US, the start of the holiday season, lower winter scrap feedstock supplies, continued scrap demand, and higher prices, which some say resemble 2007, will support scrap prices into Q1 2021.


The weekly Davis Indexes in New York rose across most grades for the sixth consecutive week. The #1 busheling index increased by $3/mt to $333/mt fas, P&S 5ft climbed by $8/mt to $328/mt fas, and shredded rose by $5/mt and $328/mt fas. The HMS 1&2 (80:20) index increased by $1/mt to $303/mt fas. Machine turnings were flat at $263/mt fas.


The Davis Indexes in Los Angeles increased for the seventh consecutive week with #1 busheling inching up by $1/mt to $310/mt fas and HMS 1&2 (80:20) rising by $4/mt fas to $290/mt fas. P&S 5ft and shredded climbed by $3/mt to $308/mt fas and $312/mt fas, respectively. 


The Davis Index in San Francisco was unchanged for #1busheling at $301/mt fas while HMS 1&2 (80:20) rose by $2/mt to $282/mt fas. P&S 5ft and shredded climbed by $1/mt to $302/mt fas and $305/mt, respectively.


In Seattle, the index for both #1 busheling and P&S 5ft was flat at $303/mt fas, HMS 1&2 (80:20) and shredded increased by $2/mt to $288/mt fas and $305/mt fas, respectively.

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