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

US containerized ferrous scrap prices increased consistently on the West Coast.


Buyers from India, Pakistan, and Bangladesh who transacted deals from the East Coast report subdued demand. India is also affected by shortage of labor as well as interruptions in logistics and supply chains. Pakistani mills are also facing liquidity issues and a pending government budget.


Buyers and sellers on both coasts are concerned that ferrous scrap prices have peaked after Turkey purchased large amounts of scrap for July at increasing scrap import prices. Many market participants anticipate a correction on those prices due to weak finishes steel demand.


The weekly Davis Index in New York for #1 busheling decreased by $3/mt to $252/mt fas and fell for HMS 1&2 (80:20) by $3/mt to $225/mt fas. The index for machine shop turnings declined by $6/mt to $187/mt fas. The Davis Index for P&S 5ft increased by $1/mt to $246/mt fas, while shredded declined by $1/mt to $242/mt fas. 


Containerized exports pricing on the East Coast was scattered with some sellers reporting deals at $257/mt fas on P&S 5ft. However, some buyers were able to lock in deals at lower prices throughout the week. 


On the West Coast, deal activity at progressively improved prices increased through the week in Los Angeles, San Francisco, and Seattle. Japanese ferrous scrap export prices rose recently as the monthly Kanto Tetsugen concluded on June 10 with the average of winning bids higher than in May. Prices were also supported by higher domestic scrap prices. 


Mills in South Korea are focusing efforts on purchasing domestic scrap as import prices have increased over the past month. West Coast sellers also expressed concern that the idling of the large Hyundai steel Dangjin operation may dampen prices. 



In Los Angeles, the weekly Davis Indexes increased by $10/mt to $248/mt fas for #1 busheling and by $7/mt to $226/mt for HMS 1&2 (80:20). The index for P&S 5ft rose by $14/mt to $247/mt fas while shredded increased by $16/mt to $247/mt fas. Shredded scrap demand declined from the region as Asian buyers who previously preferred P&S 5ft and shredded shifted attention to the HMS 1&2 (80:20) grade.


The weekly Davis Indexes in San Francisco increased for #1 busheling by $7/mt to $235/mt fas as HMS 1&2 (80:20) increased by $6/mt to $219/mt fas. The index for P&S 5ft and shredded both increased by $7/mt to $231/mt fas.


In Seattle, the weekly Davis Indexes increased for #1busheling by $5/mt to $238/mt fas, rose for HMS 1&2 (80:20) by $10/mt to $224/mt fas, were up for P&S 5ft by $5/mt to $235/mt, and ticked up for shredded by $5/mt to $235/mt fas.

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