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

The weekly US West Coast export yard ferrous scrap prices trended unchanged in Los Angeles and San Francisco but showed signs of increasing in Portland on Tuesday.


The Turkish Davis Index for US-origin HMS 1&2 (80:20) increased by $12.48/mt last week. This week the rise doubled by $24.97/mt to $458.10/mt cfr Turkey on the latest deals. Several market participants believe that with active rebar and tight global scrap, Turkish import prices could rise by another $10-15/mt over the next few weeks. 


Higher bulk prices in Turkey have lifted offers in South Asia. Bangladeshi buyers are contemplating higher offers but are concerned about lockdowns on increased COVID-19 cases and heavy rains that may slow down construction projects.


Domestic scrap prices are rising in India on tight supply flows, which will support higher import scrap prices. The shortage of oxygen resulting in production reductions at mills due to resource management could affect the pace of buying. Some large mills though are also receiving export orders and increasing prices on finished steel sales, which will further support raw material purchases at potentially higher prices due to the tight global supply. 


Mills in South Korea, Taiwan, and Vietnam are also facing higher domestic scrap prices. Regional mills expect higher demand from China in both semi-finished and finishes steel goods along with adequate domestic economic growth. Smaller buying countries like Malaysia and Thailand are also encountering higher domestic scrap prices on active demand. With domestic scrap prices rising, bulk buys are expected in May. 


Japanese exporters slowed offers on active holiday schedules but are expected to return with firm to higher offers. Domestic buyers are active and domestic scrap and finished steel prices are holding firm. Higher Japanese scrap offers will support increases in the US market. 


US domestic mills in the Pacific Northwest are being heard with scrap prices up $10-15/gt on secondary grades against April settled prices. Docks are being heard beginning to extend higher offers.


The weekly Davis Index in Portland for export yard scrap rose by $8/gt with #1 HMS and P&S 5ft climbing to $339/gt delivered and $362/gt delivered, respectively. Shredder feed increased by $5/gt to $356/gt delivered. Docks may increase prices more robustly through the week to compete with domestic mill increases.


In Los Angeles, the indexes were rangebound with #1 HMS rising by $1/gt to $297/gt delivered and by $2/gt for P&S 5ft to $308/gt delivered. Shredder feed remained unchanged at $200/gt delivered. 


San Francisco’s export yard indexes were unchanged with the Davis Index for #1 HMS at $325/gt delivered, P&S 5ft at $334/gt delivered, and shredder feed at $216/gt delivered.

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