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

Dockside ferrous scrap prices on the US West Coast rose or remained rangebound on Tuesday. The region continues moving in the opposite direction to the downturn in the East Coast.


The Davis Index for US-origin HMS 1&2 (80:20) held unchanged at $484.89/mt cfr on Tuesday compared to Jul 13. Dock prices in the UK were flat over the past week, but the EU’s dock prices fell on ambiguous sales predictions.


Japanese domestic scrap prices declined, softening export bids. Domestic ferrous scrap in South Korea, however, rose while Malaysia, Taiwan, and Thailand remained flat week-on-week. Vietnam’s domestic ferrous scrap prices fell due to concerns over rising COVID-19 cases forecast to affect the economy. 


Bangladeshi and Pakistani buyers paused trading due to the Eid holiday and are dealing with a rise in COVID-19 related concerns. Still, mills in these regions are anticipated to return to the market for some bulk buys due to the likely contraction in scrap gathering activity during the lockdowns, emerging market status, and continued economic growth after things normalize. 


The weekly Davis Indexes in Portland for export yard scrap dropped for #1 HMS by $2/gt to $392/gt delivered, P&S 5ft and shredder feed fell by $2/gt to $413/gt and $295/gt delivered export yard, respectively. 


The San Francisco weekly Davis Indexes rose substantially and caught up with increases to vendors later in the week. #1 HMS rose by $21/gt to $394/gt delivered, P&S 5ft increasing by $20/gt to $405/gt delivered, and shredder feed grew by $24/gt to $291/gt delivered. The prices are in line with the Portland area as export docks in Northwestern US increased prices to draw inventories over the past few weeks.  


In Los Angeles, the Davis Index remained rangebound with a slight downtrend. #1 HMS declined by $2/gt to $353/gt delivered while P&S 5ft fell by $1/gt to $363/gt delivered, and shredder feed remained unchanged at $268/gt delivered.


Los Angeles container prices remained unchanged over the week after HMS 1&2 (80:20) increased by $5/mt to $415-420/mt fas in the prior week. Some sellers are reporting discussions skewing towards $400-410/mt fas amid difficulty in getting sales contracts from overseas. A market participant noted that Vietnam appears to be in demand but is awaiting firmer price points. 


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