The West Coast dockside Davis Indexes for ferrous scrap increased this week, supported by stronger export demand, tight supply, and higher prices to Asian markets.
In Los Angeles, dock prices encountered a $10/nt increase across all grades after flat pricing for the past two months. San Francisco and Portland also encountered dock price increases on export demand.
Dock prices in Portland could increase further as US domestic scrap prices settle since dock prices have remained substantially lower compared to domestic mill alternatives. Sellers report delaying dock price sells until after US domestic scrap trades settle this week. Domestic mills in the region increased scrap prices by $10-15/gt on Tuesday and corresponding increases are expected at the docks.
Japanese domestic scrap prices continue encountering a slight uptrend as steelmakers resume production. The increase in export pricing has provided support to US ferrous scrap exports.
The weekly Davis Index in Los Angeles increased by $10/gt to $145/gt delivered dockside for HMS 1&2 (80:20) and rose for P&S 5ft by $11/gt to $163/gt delivered. The index for shredder feed increased by $10/gt to $98/gt delivered.
The indexes in San Francisco increased by $26/gt to $186/gt delivered dockside for HMS 1&2 (80:20), by $14/gt to $193/gt delivered for P&S 5ft, and by $9/gt to $135/gt delivered for shredder feed.
The weekly Davis Indexes in Portland increased for HMS 1&2 (80:20) by $2/gt to $169/gt delivered dockside, were unchanged for P&S 5ft at $179/gt, and rose for shredder feed by $4/gt to $145/gt delivered.
In the container market, HMS 1&2 (80:20) prices increased from $200-210/mt fas to $215-220/mt fas from LA. The $15/mt increase on the bottom of the range and $10/mt increase from the top of the range is due to tighter supply and increased export inquiries in the region.