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

The US ferrous scrap market’s June trading activity settled quickly and in synch with expected price changes throughout most markets.


Following Detroit mills’ announcements last Thursday, most regions continued the early price trend with prime grades such as #1 busheling trading at $50-60/gt increases against May settled prices while secondary grades including shredded, P&S 5ft and #1 HMS moved at $50/gt increases compared to May’s levels.


The Philadelphia market wrapped up before the weekend and described some reduced demand for prime grades that pushed up by $10/gt less than the surrounding regions. The Davis Indexes for both #1 bundles and #1 busheling increased by $50/gt to $560/gt delivered Philadelphia consumer. Secondary grades #1 HMS rose by $51/gt to $457/gt delivered and P&S 5ft increased by $50/gt to $465/gt delivered Philadelphia mill.


In Chicago, most deals finalized on Jun 4 with the remaining activity wrapping up by Monday. The monthly Davis Index for #1 busheling increased by $60/gt to $613/gt delivered Chicago mill, though some sellers report the grade transacted as high as $630/gt. Both #1 HMS and P&S 5ft rose by $50/gt to $472/gt and $511/gt delivered Chicago consumer, respectively.


In the Southeast, #1 busheling rose by $63/gt to $627/gt delivered Birmingham consumer. Shredded was in high demand amid limited availability along with other obsolete grades, which gained $50-60/gt against May settled prices. The index for #1 HMS climbed by $57/gt to $465/gt delivered and P&S 5ft increased by $55/gt to $483/gt delivered. Shredded rose by $66/gt to $505/gt delivered while turnings rose by $53/gt to $394/gt delivered.


Most other regions throughout the Southeast including Arkansas and the Carolinas traded at a $50/gt increase on secondary grades against May settled prices while #1 busheling rose by $60/gt in most trades. In the Houston market, some sellers report achieving sales at increases of $60/gt across all grades compared to May settled prices while others reported increases of $45/gt on some secondary grades and $50/gt increases on shredded. Trades on shredded in Houston increased by $10/gt to up to $505/gt delivered on the grade. 


Market participants are forecasting early sentiment for July and view either a sideways market at the low end or scrap will possibly move up $20/gt on continued mill demand, strong finished steel prices, tight scrap inventories as well as strong scrap export activity.

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