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

US East Coast dock collection prices for ferrous scrap rose for some grades and dock locations and remained unchanged for others amid resumption of activity from Turkey and scrap supply tightness. India continues with the lockdown for one more week. 


Turkish buying has been slow to inactive Since March 3 due to weak demand and difficulty in selling steel products. A Turkish import of US-origin HMS 1&2 (80:20) was reported on Tuesday at $242.92/mt cfr.


Sellers told Davis Index, they received a few quotes on April 7 for HMS 1&2 (80:20) at $150/gt or more as material is currently loading at a Boston dock. Sales at new price levels have not been confirmed as some sellers are waiting to see if offers rise further. Market participants opine that export yards will hold at current prices for as long as possible.


In Boston, the weekly Davis Index for export yard HMS 1&2 (80:20) increased by $6/gt from $139/gt to $145/gt delivered dock and rose for P&S 5ft by $6/gt to $155/gt delivered Boston dock. The index for shredder feed increased by $2/gt to $105/gt delivered. 


The Davis Index for export yard buying prices in New York for HMS 1&2 (80:20) was flat at $138/gt delivered on Tuesday and remained unchanged at $148/gt delivered New York dock for P&S 5ft. The index for shredder feed held at $102/gt delivered. 


In Philadelphia, the index for export yard collection prices of HMS 1&2 (80:20) was flat at $141/gt delivered on Tuesday and held at $151/gt delivered Philadelphia dock for P&S 5ft. The index remained unchanged at $106/gt delivered for shredder feed.  


The domestic ferrous scrap trade kicked off on Tuesday in Detroit as mills announced price decreases of $30/gt for prime grades and $50/gt for shredded and cut grades. Market participants anticipate much resistance at these prices because sellers have little to no yard inventory and no expectation of inbound material in April due to industry stoppages. 


Scrap volumes that could be transacted at those levels remained unclear on Tuesday as did an estimate of other regions that would follow Detroit’s price direction. Market participants have suggested that available material is more likely to move at decreases of $10-20/gt for prime and $20-30/gt for secondary grades. Otherwise, some mills have the option to use internal inventories to meet reduced melting requirements.

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