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

US East Coast and Houston collection prices for ferrous scrap trended mostly unchanged with soft downward movements on delivered prices lingering this week. Greater drops and price decrease announcements occurred last week at both the East Coast and Houston docks.


Supply continues to outpace scrap demand, which has put gradual downward price pressure on export and domestic prices over the past two months. Sellers are hopeful that export activity, which has been sluggish, will pick up in September when buyers begin booking October shipments.


The Davis Index for US HMS 1&2 (80:20) exports to Turkey is at $447.76/mt cfr on Tuesday showing little movement compared to $449.85/mt cfr on Aug 24. Longer-term declines are also tapering off as prices for this export grade had fallen by $15.84/mt on Tuesday compared to $463.60/mt cfr on Aug 3.


Dockside sales for #1 HMS remained in the range of $330-360/gt per dock location and prior sales level. The grade has dropped about $10-20/gt compared to dockside levels from a month ago with variance per dock and starting price points.


In Boston, prices still sit below levels at other docks on the East Coast. The weekly Davis Index for both export yard #1 HMS and P&S 5ft fell by $2/gt to $339/gt delivered and $349/gt delivered Boston dock, respectively. The shredder feed index ticked down by $1/gt to $239/gt delivered Boston export yard. 


The weekly Davis Index for export yard buying prices in New York were flat across all grades with #1 HMS at $348/gt delivered, P&S 5ft at $358/gt delivered, and shredder feed at $278/gt delivered New York dock. 


In Philadelphia, the Davis Index for export yard collection prices fell by $2/gt for #1 HMS to $347/gt delivered and P&S 5ft fell by $1/gt to $356/gt delivered Philadelphia dock. The index for shredder feed remains firmer holding flat at $278/gt delivered. 


In Houston, the weekly Davis Index remained unchanged for #1 HMS and P&S 5ft at $368/gt and $404/gt delivered, respectively. The index for shredder feed inched down by $1/gt to $277/gt delivered Houston dock. Area participants note prices may go down by next week on weakened Texas domestic markets.

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