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

US West Coast ferrous scrap dock prices trended flat to up during the week. Regional docks did not officially increase prices but narrowed their previous buying ranges as lower-priced scrap sources received more compensation. 


Higher ferrous scrap prices in the US export market are being supported by rising domestic scrap prices in many Asian countries including Japan. Japanese ferrous scrap exports are expected to continue increasing this week providing further support for bulk and containerized scrap off US coasts. Bulk offers from Russia rose this week after higher import scrap deals ex-US reached $275/mt cfr on shredded scrap, making HMS 1&2 (80:20) equivalent at $270/mt cfr Turkey. Offers from various regions are at $275/mt cfr on HMS 1&2 (80:20) as Turkish import prices could increase in the next deal.


The weekly Davis Indexes in Portland increased for HMS 1&2 (80:20) by $1/gt to $185/gt delivered dockside, while P&S 5ft rose by $2/gt to $196/gt delivered. The index for shredder feed inched up by $1/gt to $146/gt delivered. 


Mill prices continue to remain more attractive than dock prices in the Pacific Northwest thereby encouraging some scrap yards to hold on to inventories until the early August ferrous trading week. A period signaling improved export demand and higher prices compared to recent history is reinforcing the expectation that docks in Portland may adjust significantly up next week. Higher bulk and container deals to Asian buyers this week will support increases at docks in Los Angeles and San Francisco as well.


In Los Angeles, the weekly Davis Indexes increased slightly on a rise at the bottom of the previous buying range, but without a dock price announcement. The index for HMS 1&2 (80:20) and P&S 5ft increased by $2/gt to $162/gt delivered dockside and $175/gt delivered, respectively, while shredder feed prices inched up to recuperate last week’s index erosion of $1/gt to $124/gt delivered.


The weekly Davis Indexes in San Francisco reversed course from last week with HMS 1&2 (80:20) increasing by $3/gt to $182/gt delivered dockside, P&S 5ft rising by $2/gt to $192/gt, and shredder feed going up by $1/gt to $133/gt delivered.


The containerized market on the West Coast has gained strength now for the third consecutive week. In Los Angeles, containerized HMS 1&2 (80:20) increased by $5-10/mt as container prices rose from $220-225/mt fas to $225-230/mt fas this week. Several sellers expect $235/mt fas on the grade by the end of the week per ongoing negotiations.

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