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

US East Coast and Houston dock collection prices for ferrous scrap remained on an upward trajectory for the third successive week amid export and domestic market price strength. 


Expansions on the East Coast have improved this week compared to limited movements earlier in May, as dockside sales are now more aligned with export sale price gains. Meanwhile, Houston dock increases are relatively modest following last week’s price surges.


Dockside sales for #1 HMS on the East Coast were generally between $365-400/gt on Tuesday based on dock location and base price from prior sales. The highest levels reported for the grade stood at $420/gt which may, in turn, pull prices up at other docks. Also, dealers with ample tonnage are receiving higher prices while some docks are still fulfilling prior orders, also contributing to inconsistencies.


The Davis Index for US HMS 1&2 (80:20) exports to Turkey is up $2.50/mt since last week on slowing activity following strong demand due to the current disparity between offer and bid levels. The index for the grade stands at $505/mt cfr compared to $502.50/mt cfr last week on May 11. In the longer term, this signifies a $84.35/mt rise compared to $420.65/mt cfr for the export grade a month prior, on April 20.


In Boston, the weekly Davis Index for export yard #1 HMS increased by $11/gt to $358/gt and rose by $10/gt for P&S 5ft to $368/gt delivered Boston dock. Shredder feed stayed flat at $248/gt delivered Boston export yard. Market participants noted that upticks to this dock have been delayed as bulk export sellers are filling older lower-priced orders.


The weekly Davis Index for export yard buying prices in New York moved up by $17/gt for #1 HMS to $386/gt delivered and P&S 5ft rose by $19/gt to $397/gt, while shredder feed soared by $27/gt to $289/gt delivered New York dock. 


In Philadelphia, the Davis Index for export yard collection prices of #1 HMS jumped by $20/gt to $388/gt delivered and P&S 5ft moved up by $23/gt to $399/gt delivered Philadelphia dock. The index for shredder feed surged by $29/gt to $293/gt delivered. 


In Houston, the weekly Davis Index inched up by $3/gt for #1 HMS and shredder feed to $382/gt delivered and $262/gt delivered, respectively, while P&S 5ft ticked up by $9/gt to $403/gt delivered Houston dock. The movements follow last week’s gains of $35-40/gt.

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