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

Dockside ferrous scrap prices remained unchanged throughout the US West Coast as export inquiries slowed from Asian buyers. Dock prices also held on the expectation of US domestic scrap prices trending sideways or sideways soft in the early July trading week. 


Volume inquiries declined over the past week as Asian buyers reduced interest due to holidays, scheduled maintenance shutdowns at mills, shifting interest to domestic scrap sources, and concerns about COVID-19 lockdowns in Asia. Supply surplus and weakened demand because of these lockdowns could make it more difficult for suppliers to achieve higher finished steel prices. 


The weekly Davis Indexes in Portland remained unchanged for HMS 1&2 (80:20) at $193/gt delivered dockside, P&S 5ft at $201/gt delivered, and shredder feed at $155/gt delivered.


Scrap yards from the northwestern region inform Davis Index of tonnages withheld from docks in preference for higher domestic mill prices. However, more placement of tonnages at the docks may be an option in early July depending on the scrap-buy volumes during the month. Thus, regional mills may erase the $10-15/gt price gains that scrap encountered in the June trading period. 


Japanese export offers to Vietnam, Taiwan, South Korea, and other Asian destinations softened over the past week, making it difficult for US sellers to maintain firm pricing during negotiations. A bulk seller reported that with lower bid offers from Asian buyers when negotiations began this week, compared to last week, new West Coast bulk deals may not close until next week as the trends become clearer. At issue is also the expressed interest of buyers for lower bulk volumes when the seller is targeting 35,000-45,000mt vessels. 


In Los Angeles, the weekly Davis Indexes for all grades continued unchanged with HMS 1&2 (80:20) at $147/gt delivered dockside, P&S 5ft at $167/gt delivered, and shredder feed at $106/gt delivered.


The weekly indices in San Francisco are unchanged after a robust increase last week with HMS 1&2 (80:20) unchanged at $202/gt delivered dockside and P&S 5ft index flat at $207/gt delivered. The index for shredder feed also remained flat at $144/gt delivered.


In the containerized scrap market, prices for HMS 1&2 (80:20) that encountered an increase of $10/mt to $230-235/mt fas from Los Angeles last week, saw a reverse trend this week returning to $220-225/mt fas. Some sellers, though, report the ability to place HMS 1&2 (80:20) at $230-235/mt fas with extremely tight quality assurances. 

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