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

US West Coast dock prices were mostly rangebound on the West Coast as more sellers obtained the slightly higher prices within the existing ranges. 


The Turkish Davis Index for US-origin HMS 1&2 (80:20) rose by $8.19/mt to $513.19/mt cfr Turkey today compared to 505/mt cfr on May 18. The index has climbed by $92.84/mt over the past four weeks. US exporter offers are at $530-550/mt cfr with a recent US deal off NOLA for HMS 1&2 (95:5) at $515/mt cfr Turkey. Market participants are noting a slight slowdown in Asia. It is believed that scrap has hit a peak and deals could be finalized at lower prices in early June. 


US domestic scrap’s outlook continues to remain positive for June. Exporters needing to fulfill orders are therefore maintaining dock prices at strong levels to compete with domestic mills. 


EU dock prices are trending flat after rising in the prior week while UK dock prices increased only by $3-4/mt against last week’s levels. 


Domestic scrap prices in Asia remain strong but South Korean and Taiwanese mills have lowered bids for Japanese scrap. Recent bulk and container deals ex-Japan have trended down by $5-6/mt against similar trades a week ago.


Indian domestic ferrous scrap prices fell allowing importers to negotiate lower import buying prices. The same trend is evident in Bangladesh, China, Pakistan, and South Korea. Spot iron ore prices are likely to remain firm and will provide support to ferrous prices. 


The weekly Davis Indexes in Portland for export yard scrap trended unchanged this week after rising by $6-9/gt in the prior week. The indexes were unchanged for #1 HMS at $370/gt delivered, P&S 5ft at $383/gt delivered, and shredder feed at $274/gt delivered. 


In San Francisco, the Davis Indexes rose by $2/gt after rising $16-17/gt the prior week. With this week’s increase, #1 HMS, P&S 5ft, and shredder feed rose to $352 delivered, $364/gt delivered, and $246/gt, respectively. 


In Los Angeles, the indexes were mixed after trending flat last week with #1 HMS unchanged at $310/gt delivered, P&S 5ft rising by $3/gt to $323/gt delivered. Shredder feed rose by $7/gt to $207/gt delivered. Docks increased prices for some sellers but within the established range. Given the export softness over the week, the price increase announcements are unlikely according to sources.

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