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

US West Coast ferrous scrap dock prices remained unchanged this week as global markets move sideways despite strong fundamentals. Los Angeles docks may increase prices later in the month as the market develops. 


Imported scrap prices in Turkey are trending sideways, influencing the global sentiment. Turkish domestic scrap prices have increased for some mills though domestic and exported rebar prices continue flat. 


South Korea, Thailand, Malaysia, and Vietnam domestic scrap markets remained unchanged this week while Taiwan’s domestic scrap prices rose for the second consecutive week on higher imports given limited domestic supplies. 


In Japan, domestic scrap prices continued flat this week as export prices sought to increase. Domestic scrap prices increased in Vietnam, Thailand, and Taiwan. Asian mills are also seeking to improve domestic and export prices on finished steel. 


Demand for bulk and containerized scrap is strong in Bangladesh, Pakistan, and India, where mills are willing to pay higher imported prices. As a result, offers from Australia, US, UK, UAE, and Latin America firmed up to these destinations on rising inquiries. Recovering economies and the implementation of mega infrastructure projects are supporting finished steel prices. 


US scrap yards continue reporting low incoming feedstock and tight processed scrap inventories at docks. Fewer demolition projects have resulted in lower volumes of quality structural and cut grades in larger tonnages. Regional docks are also competing with demand via containers to Asia and Mexico. 


The weekly Davis Indexes in Portland were flat for the second consecutive week as HMS 1&2 (80:20), P&S 5ft, and Shredder feed continued at $218/gt delivered, $239/gt delivered, and $186/gt delivered, respectively.  


Docks did not alter prices in the area on expectations of status quo against October scrap settled prices by mills and strong but relatively leveled export demand. The November scrap trading week is starting on Wednesday or Thursday with deals on obsolete or secondary grades being heard in the US Southeast predominantly sideways at pricing while prime grades are trading up $15-25/gt at $310-325/gt delivered. 


Scrap yard dealers in the Pacific Northwest were beginning negotiations on Tuesday with expectations of sideways pricing against October settled levels. 


In San Francisco, the weekly indexes were unchanged also for the second consecutive week with HMS 1&2 (80:20) continuing at $234/gt delivered, P&S 5ft at $246/gt delivered, and Shredder feed flat at $155/mt delivered.  


The weekly Davis Indexes in Los Angeles were unchanged this week after a robust increase last week as docks did not change list prices but paid higher prices for premium loads. The indexes were flat for HMS 1&2 (80:20) at $191/gt delivered, P&S 5ft at $204/gt delivered dockside, and Shredder feed at $139/gt delivered.


In Los Angeles, the containerized market continues trending strong with HMS 1&2 (80:20) firming up from $262-265/mt fas last week to solid multiple deals at $265/mt fas on Tuesday. P&S 5ft is also firming up to $280/mt fast from last week’s $276-280/mt fas range.

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