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

US containerized ferrous scrap prices reversed the trend from last week with prices firming up on the West Coast and softening on the East Coast ending the latter’s upward trajectory of the past three weeks. 


Still, buying interest continues on the East Coast though deals are smaller due to firm selling prices and the retreat of some buyers who are unable to proceed at those prices. 


Some suppliers are reluctant to sell at lower numbers due to better domestic pricing with expected increases of $20-30/gt in the July ferrous trading week against June settled prices. Sellers also expect export transactions to resume at the offer prices in the following weeks due to tight global ferrous scrap inventories.  


The weekly Davis Indexes in New York fell by $2-8/mt on Thursday after rising by $3-7/mt the prior week. The index for #1 busheling declined by $8/mt to $510/mt fas while P&S 5ft and shredded fell by $2/mt each to $490/mt fas and $486/mt fas, respectively. Machine turnings decreased by $4/mt to $434/mt fas. HMS 1&2 (80:20) maintained its strength and climbed by $1/mt to $469/mt fas. Some sellers reported slightly higher deals on  HMS 1&2 (80:20) while others achieved deal prices at $5/mt lower than last week. 


Some brokers noted a weak Indian market this week due to price pressure on finished and semi-finished markets due to weaker demand. 


Iron ore prices above $219/mt cfr North China is supporting global ferrous scrap prices. A Canadian seller noted the possibility of placing P&S 5ft to China in containerized format. Chinese purchase of ferrous scrap, which has been anticipated since early January 2020 given policy changes in the Asian nation, would further support and fuel ferrous scrap prices. Market participants previously noted that hesitation from Chinese buyers was not due to a lack of desire or need, but uncertainty in the import process to the country which could result in delays or penalties. 


Japanese ferrous scrap exporters are also maintaining firm prices and receiving support from flat domestic ferrous scrap prices. 


In Los Angeles, the index for #1 busheling and HMS 1&2 (80:20) rose by $5/mt to $440/mt fas and $408/mt fas, respectively. Shredded climbed by $4/mt to $437/mt fas and P&S 5ft rose by $2/mt fas to $435/mt fas. Deals to Bangladesh, South Korea, Taiwan, and Vietnam were noted in the western region. 


San Francisco’s indexes rose after trending down by $1-3/mt the prior week with #1 busheling, P&S 5ft and HMS 1&2 (80:20) rising by $5/m to $435/mt fas, $430/mt fas, and $403/mt fas, respectively.


In Seattle too, the indexes rose by $4-5/mt after declining by $2-3/mt last week. The weekly Davis Indexes for HMS 1&2 (80:20) and shredded rose by $5/mt to $398/mt fas and $428/mt fas, respectively. P&S 5ft and #1 busheling climbed by $4/mt to $427/mt fas and $431/mt, respectively. 

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