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

US containerized ferrous scrap prices trended sideways on the East Coast and were rangebound with upward pressure on the West Coast.  


The New York weekly Davis Index trended unchanged after slight losses in the previous week. Both buyers and sellers reported stagnant prices. A seller reported that container export pricing has a better margin on fob basis compared to US domestic prices after the latter eroded this week. The region’s indexes remained unchanged with #1 busheling at $494/mt fas, P&S 5ft at $472/mt fas, and shredded at $468/mt fas. HMS 1&2 (80:20) also trended flat at $431/mt fas while turnings held at $387/mt fas.  


Import offers to India, Pakistan, and Bangladesh on the East Coast continue high, though buyers are hesitant and bidding lower on weak domestic indicators. Container prices on the East Coast may trend down over the next few weeks if US domestic scrap prices do not firm up into October or export deals do not increase. Still, demand from Turkey and other countries is anticipated to continue for October and November buys via both bulk and containers. 


Japanese ferrous scrap offers have firmed up after higher-than-expected bids in the Kanto Tetsugen auction. The firmer prices in Japan will support export ferrous prices on the US West Coast. 


The weekly Los Angeles Davis Indexes increased by $3/mt across all grades with #1 busheling at $438/mt fas, shredded at $434/mt fas, P&S 5ft at $433/mt fas, and HMS 1&2 (80:20) now at $402/mt fas. Sellers and buyers continue bemoaning port logistics problems, the lack of container availability, and ever-increasing freight costs in the containerized market. 


The market is showing uncertainty due to various lockdowns in Asia including Japan, due to the COVID-19 pandemic. Market participants are hoping for a surge due to lower domestic inventories and recovery efforts but note that clarify may not come until later in Q4.


San Francisco’s Davis Indexes for #1 busheling, P&S 5ft and shredded all increased by $2/mt to $430/mt fas $423/mt fas, and $423/mt fas, respectively, after remaining unchanged last week. HMS 1&2 (80:20) recuperated by $1/mt after the $2/mt decline last week to $389/mt fas.


In Seattle, the Davis Index for #1 busheling and HMS 1&2 (80:20) rose by $2/mt to $423/mt fas and $386/mt fas, respectively. P&S 5ft and shredded both gained $1/mt to $419/mt fas.


The US-origin HMS 1&2 (80:20) index decreased by $10.49/mt this week to $444.26/mt cfr Turkey on Thursday from $454.75/mt cfr on Sep 2. 

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