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

US West Coast ferrous scrap dock prices were mostly rangebound this week. Shredder feed prices increased in Portland while other grades trended flat. Los Angeles and San Francisco encountered minor declines. 


US-sourced scrap was provided with price support after Japanese export scrap prices increased. Moreover, buyers report the availability of limited scrap inventory for the desired time frames in late August and early September. 


The weekly Davis Indexes in Portland remained unchanged for HMS 1&2 (80:20) at $184/gt delivered dockside and P&S 5ft at $194/gt delivered. The index for shredder feed rose by $5/gt to $145/gt delivered as one dock increased prices to attract feedstock inventories. As mill prices are more attractive to scrap dealers, even with the higher processing to meet the quality requirements, dock prices are expected to improve by early August. 


The weekly Davis Indexes in Los Angeles were range bound with minor changes declining by $1/gt to $160/gt delivered dockside for HMS 1&2 (80:20), falling by $3/gt to $173/gt delivered for P&S 5ft, and inching down by $1/gt to $123/gt delivered for shredder feed.


The weekly Davis Indexes in San Francisco softened with HMS 1&2 (80:20) declining by $3/gt to $179/gt delivered dockside, P&S 5ft decreasing by $1/gt to $190/gt, and shredder feed remaining unchanged at $132/gt delivered.


The containerized market on the West Coast has gained strength over the past two weeks while remaining mostly flat on the East Coast. In Los Angeles, containerized HMS 1&2 (80:20) increased by $8-15/mt as container prices rose from $205-217/mt fas to $220-225/mt fas this week. Better container prices are being supported by higher competing Japanese export prices along with hesitation by large mills to cement bulk buys due to market uncertainty. 


A large South Korean mill, for example, is delaying bulk negotiations until August, increasing domestic buys, hedging with imported container buys, and relying on the long-term contracts already set in place for short-term scrap deliveries prior to determining bulk needs.

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