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

US West Coast ferrous scrap dock prices in Portland and San Francisco encountered a slight correction this week breaking a two-week cycle of increases. Prices in Los Angeles continued flat for the fourth consecutive week.


Asian buyers continued their high interest in bulk and container shipments in the first week of September. Bangladeshi, Pakistani, and Indian mills are increasing production plans, although, to varying degrees as some markets are expecting stronger finished steel demand while others face volatile domestic prices on regional uncertainties. 


Turkish mills supported a positive sentiment of tight global scrap supplies with the latest HMS 1&2 (80:20) deals announced at $300-301/mt cfr Turkey, Turkey, unchanged from last week’s deal levels.


Japanese ferrous scrap export prices firmed up during the higher August Kanto trades. Buyers are now seeking guidance from the upcoming September ferrous scrap auctions in Japan, the outcome of which, could also affect US dock prices. Domestic scrap prices in Japan have not increased, but export offer prices have ticked up on potential effects from the ongoing monsoon season as well as increased domestic demand as Japanese mills increase October production schedules. 


Vietnam, South Korea, and Taiwan have yet to increase bulk import inquiries early this week. Vietnam’s domestic scrap prices increased while South Korean mills reduced bids for domestic scrap compared to last week. Taiwan’s domestic and finished steel goods prices continue flat this week. 


Asian scrap buyers who find the US, EU, and Japanese scrap expensive continue seeking alternative sourcing. However, scrap prices could remain relatively flat due to increased economic activity and the expectation of higher utilization rates as scrap inventories recover in both Asian and source markets. 


The weekly Davis Indexes in Portland decreased by $3/gt on both HMS 1&2 (80:20) and P&S 5ft to $231/gt and $241/gt, respectively, after a robust increase due to short-term incentives offered to sellers last week as docks competed with mills for scrap inventories. At the time, regional mills increased buying prices by $20-25/gt pushing docks to increase their prices in tandem. Shredder feed remained flat at $183/gt delivered.


In San Francisco, the weekly indexes decreased slightly with HMS 1&2 (80:20) slipping by $5/gt and P&S 5ft by $3/gt to $227/gt delivered and $233/gt delivered, respectively. Shredder feed remained unchanged at $160/gt delivered.  


The weekly Davis Indexes in Los Angeles remained unchanged for HMS 1&2 (80:20) at $186/gt and P&S 5ft at $203/gt delivered while shredder feed trended flat at $146/gt delivered. 


The containerized market in Los Angeles increased by $10/mt this week as HMS 1&2 (80:20) prices moved from $250-255/mt fas to $250-260/mt fas early this week. Several sellers report $255-260/mt placements while others are facing buyer resistance that is keeping their trade levels at $250-255/mt fas.


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