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

The weekly export yard ferrous scrap prices on the US West Coast were mostly unchanged after declining last week.


Contracts that guaranteed incoming flows into docks at January prices continue to be honored in some regions. Sellers are noting that the bottom of buying ranges will likely disappear over the week as the Asian markets strengthen and docks continue needing scrap to fulfill volumes. P&S 5ft remains in short supply.


Turkey’s domestic scrap prices are mixed. On Feb 8 domestic scrap prices declined but weekly shipbreaking scrap prices increased by $5/mt on Tuesday. Imported scrap buying prices have declined over the past month because of which, dock buying prices have trended down. However, the market seems to have bottomed and a resurgence in import inquiries by Turkish mills along with firmer domestic scrap prices in Asian markets point to an uptrend in imported scrap prices toward the end of February.


In India, demand is driving billet and rebar prices higher. Thus, imported scrap buys by Indian mills will be supported by rebounding domestic ferrous scrap prices. South Korea, Bangladesh, Pakistan, Taiwan, and Vietnam adopted a wait and see perspective but may return to bulk buys after the Lunar New Year holiday supported by domestic demand, improving domestic finished steel prices, and Chinese demand. In China, HRC prices are rising in anticipation of improved demand after the regional holiday.


Japanese export offers are increasing, which in turn, is firming up US exporter offer prices. Additionally, dealers are less willing to discount scrap transactions on the expectation that March US domestic scrap may increase by $20-30/gt against the February settled prices.


In the three markets analyzed by Davis Index, Portland encountered minor upticks of $1-4/gt while Los Angeles and San Francisco trended flat.  Last week, Portland’s indexes fell by $12-18/gt, San Francisco’s declined by $7-10/gt, and Los Angeles indexes fell by $13-28/gt.


In Portland, the Davis Index for #1 HMS climbed by $4/gt to $349/gt delivered while P&S 5ft increased by $1/gt to $357/gt delivered. Shredder feed improved by $2/gt to $257/gt delivered.


The weekly indexes in San Francisco were unchanged for #1 HMS at $326/gt delivered and P&S 5ft at $334/gt delivered. The shredder feed index was also flat at $212/gt delivered.


The weekly Davis Indexes for dock prices in Los Angeles were rangebound with #1 HMS at $270/gt delivered and P&S 5ft at $288/gt delivered. Shredder feed also trended flat at $178/gt delivered. Regional docks contemplated reducing buying prices by another $20/gt towards the end of last week but maintained prices on tight supply and upward strength showing in the Asian markets.


The downtrend in the containerized market has also taken a pause. HMS 1&2 (80:20) containerized in Los Angeles remains wide at $310-345/mt fas with most sellers reporting $320-325/mt fas as the most common price point. Containerized freight rates have also reportedly declined from $30-50/mt to Taiwan last week to $27-35/mt this week.

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