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

US West Coast dock prices were mostly flat except for the Los Angeles region where scrap buying prices increased last week. The dock region has trended lower than Portland and San Francisco and needed upward adjustment.


Dock price movements are expected to trend down in mid-to late-June in the export market. Asian domestic ferrous scrap prices have adjusted downward slightly in some regions including South Korea, Taiwan, and Vietnam. 


Volatile steel prices in China, which recently encountered slight declines have diminished the bullish trend in finished steel prices and ferrous scrap. Still, most participants anticipate scrap prices to remain strong through summer, an unusual seasonal shift compared to prior years. Japanese domestic scrap prices are trending sideways though export offers have softened marginally on weaker demand and higher scrap flows through the summer.


The Turkish Davis Index for US-origin HMS 1&2 (80:20) fell by $10.69/mt to $502.50/mt cfr Turkey today compared to $513.19/mt on May 25. The index rose by $82.15/mt over the past four weeks with some points having reached higher but facing the latest correction over the past week. 


The weekly Davis Indexes in Portland for export yard scrap trended unchanged for a second consecutive week for #1 HMS at $370/gt delivered, P&S 5ft at $383/gt delivered, and shredder feed at $274/gt delivered. 


Market participants report that docks will adjust prices based on the domestic trading cues later this week. Some expect a rise of $15/gt while others anticipate increases of $20-25/gt against May settled prices on #1 HMS, P&S 5ft, and shredded on Pacific Northwest mill buys. With the slight downtick in export prices, mills may not make the full increase of $25/gt initially anticipated in mid-month. 


In San Francisco, the Davis Indexes were also unchanged with #1 HMS remaining at $352/gt delivered, P&S 5ft at $364/gt delivered, and shredder feed at $246/gt. 


Los Angeles docks, which have trended below the other regions, saw a $20/gt increase in the middle of last week. #1 HMS rose by $19/gt to $329/gt delivered and P&S 5ft climbed by $18/gt to $341/gt delivered. Shredder feed grew by $20/gt to $227/gt delivered. Late in the day today, some market participants report slightly higher prices on large scrap buys above index levels as the dock increases inventories for the fulfillment of commitments for export buyers.

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