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

US East Coast dock collection prices for ferrous scrap declined by $12-22/gt across all grades and dock locations amid slow export activity for the third straight week and growing global market uncertainty. Turkey has refrained from purchasing scrap from the US, rendering export potential unclear.


In Boston, the weekly Davis Index for export yard HMS 1&2 (80:20) dropped by $19/gt to $197/gt delivered dock and declined for P&S 5ft by $19/gt to $207/gt delivered Boston dock. The index for shredder feed prices moved down by $12/gt to $146/gt delivered. 


The weekly Davis Index for export yard buying prices in New York for HMS 1&2 (80:20) declined by $22/gt to $194/gt delivered on Tuesday and decreased by $22/gt to $204/gt delivered New York dock for P&S 5ft. The index for shredder feed dropped by $14/gt to $144/gt delivered. 


In Philadelphia, the index for export yard collection prices of HMS 1&2 (80:20) dropped by $20/gt to $193/gt delivered. The Davis Index for P&S 5ft decreased by $20/gt to $203/gt delivered Philadelphia dock and dropped for shredder feed by $15/gt to $143/gt delivered.  


The prices for HMS 1&2 (80:20) decreased by $15-25/gt depending on dock location and prior sale price to $190-200/gt. The price range was below late last week’s projection of $195-205/gt. 


Limited tons are moving this week at $200/gt for HMS 1&2 (80:20) and dock collection prices are expected to continue downward with no market bottom in sight. 


Sellers believe a $20-30/gt decline is realistic for East Coast dock collection prices, either next week or soon thereafter. Market participants expect HMS 1&2 (80:20) to drop shortly to $175-185/gt. 


Market participants are trying to gauge the full effect of weakening industrial activity amid the spread of COVID-19 on their individual businesses and prices. Changes have been rapid in these unprecedented times and there’s a general lack of confidence as the industry tries to navigate, day-by-day through current conditions.

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