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

US West Coast dock prices trended flat for the third successive week on Tuesday as East Coast docks transferred from rangebound last week to small downward price adjustments. The downturn along the East Coast reflects the trend evident in the UK and EU docks today. 


The daily Davis Index for US-origin HMS 1&2 (80:20) rose by $2.02 to 499.52/mt from $497.50/mt cfr Turkey on Tuesday compared to Jun 22. Turkish import scrap deals may revolve around $500/mt cfr on the grade through July. 


The July US domestic trading week is expected to begin next week after the July 4 holiday with moves of sideways to up $20-30/gt on June settlement prices depending on grade and region. Although Turkey does not purchase ferrous scrap from the West Coast, its movements traditionally influence global scrap trends. 


Iron ore prices have firmed up to $220/mt cfr China after declining to $206.50/mt cfr on Jun 22. The domestic scrap buying levels of most Asian countries actively buying on the West Coast remained flat. In South Korea, ferrous domestic scrap prices are showing resilience on strong demand and limited inventories. Indian buyers note that prices on both coasts of the US are firm due to limited scrap availability.


Japanese domestic scrap prices have trended flat with limited export placements. Given the domestic strength, US exporters believe it is in the Japanese exporter’s best interest to maintain firm pricing into July. Bangladeshi mills are expected to return for bulk buys after more clarity and economic activities return from the most recent late June lockdown after a surge in COVID-19 infections. 


The weekly Davis Indexes in Portland for export yard scrap continued flat with #1 HMS at $381/mt delivered, P&S 5ft at $404/gt delivered, and shredder feed at $277/gt delivered export yard. 


In San Francisco, the Davis Indexes remained unchanged with #1 HMS at $360/gt delivered, P&S 5ft at $369/gt delivered, and shredder feed at $254/gt delivered. 


The Los Angeles dock prices also were unchanged this week with #1 HMS at $341/gt delivered, P&S 5ft at $351/gt delivered, and shredder feed at $251/gt delivered.


The container market in LA continues at about $400-405/mt fas for HMS 1&2 (80:20) with suppliers seeking deals at $415/mt fas. Some sellers report adequate inquiries, which may allow for gains of $5-10/mt by the end of the week, while others report that limited sales opportunities with their customary clients may limit the upswing. 

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