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

US West Coast dock prices ascended in San Francisco and Portland but were unchanged in Los Angeles on Tuesday. 


The Turkish Davis Index for US-origin HMS 1&2 (80:20) rose by $2.80/mt to $505/mt cfr Turkey today compared to May 11. The index has increased by $84.65/mt over the past three weeks. Today, several deals were confirmed at $500-507/mt cfr Turkey on the grade from other origin sources, which only support further index increases for US-origin. US exporters have lifted offers for US-origin deals at $530-550/mt cfr. 


UK and EU dock prices rose this week. Firm offers for export scrap from Japan were present in the market amid higher prices for finished steel and scrap and tight ferrous scrap supplies. 


Domestic scrap prices throughout Asia continue trending up. Mills from South Korea, Taiwan, and Vietnam could engage in bulk buys in May. Emerging markets such as Thailand and Malaysia are also facing rising domestic scrap prices on tight supplies and higher import prices. 


Concerns over any correction in the Turkish market as well as difficult and unpredictable business dynamics in India continue to weigh on an otherwise optimistic outlook. Indian mills are vested on export orders and are facing COVID-19 infection concerns, though those numbers are dropping. 


Bangladeshi and Pakistani mills are slowly returning to a higher-priced scrap market but are expected to engage in additional transactions in May given the risk of still higher bulk and container prices through the summer. 


Strong Chinese activity is supporting global sentiment. Finished steel prices have firmed up and spot iron prices increased to $217/mt cfr on 62pc Fe support the higher scrap prices. 


The weekly Davis Indexes in Portland for export yard scrap rose by $6-9/gt this week after an increase of $9-15/gt last week. #1 HMS rose by $6/gt to $370/gt delivered while P&S 5ft climbed by $7/gt to $383/gt delivered. Shredder feed rose by $9/gt again to $274/gt delivered. 


Some Portland area dealers have been receiving higher prices for a few weeks while others limited flows to the docks pressuring for higher prices on the export trend. US domestic mills in the Pacific Northwest are expected to have sharp increases in scrap buying prices with some market participants anticipating them up $40-50/gt on secondary grades against April settled prices. 


In Los Angeles, the indexes were flat this week with #1 HMS remaining at $310/gt delivered and P&S 5ft at $320/gt delivered. Shredder feed remained unchanged for the third successive week at $200/gt delivered. Market participants are anticipating a dock increase soon as container export prices rose. 


In San Francisco, the Davis Index rose by $16-17/gt after increasing by $9-12/gt in the prior week. #1 HMS and P&S 5ft climbed by $16/gt to $350 delivered and $362/gt delivered, respectively. Shredder feed rose by $17/gt to $244/gt delivered.


Containerized HMS 1&2 (80:20) climbed from $385-400/mt fas from Los Angeles on May 11 to $410-415/mt fas today, up $15-25/mt.

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