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

Prices for US containerized ferrous scrap on both coasts rose for some grades and fell for others as buyers remained tentative and shifted grade preferences. Sellers on both coasts reported slightly lower deal prices on higher grades. Offers to mills depended on their needs and while some mills made lower bids, others increased their bid price to secure shipments for specific grades. 


In New York and Los Angeles some buying mills sought scrap at slightly lower prices compared to last week. Prices declined in New York on higher grades after two consecutive weeks of increases that were preceded by flat prices in early May. 


The weekly Davis Index in New York for #1 busheling decreased by $3/mt to $247/mt fas while the index for HMS 1&2 (80:20) rose by $6/mt to $221/mt fas. The index for machine turnings increased by $2/mt to $189/mt fas. The Davis Index for P&S 5ft decreased by $4/mt to $238/mt fas, while shredded was flat at $235/mt fas. The containerized market on the East Coast remains weak. 


In Los Angeles, the weekly Davis Indexes increased for the most part with #1 busheling rising by $10/mt to $223/mt fas and HMS 1&2 (80:20) increasing by $3/mt to $207/mt. The weekly indexes for P&S 5ft and shredded were flat at $223/mt fas and $227/mt fas, respectively. 


The weekly Davis Indexes in San Francisco decreased for #1 busheling by $5/mt to $220/mt fas and increased for HMS 1&2 (80:20) by $1/mt to $197/mt fas. The index for P&S 5ft decreased by $3/mt to $220/mt fas and declined by $3/mt to $220/mt fas for shredded. 


In Seattle, the Davis Indexes remained unchanged after an increase last week at $218/mt fas for#1busheling, $218/mt fas for P&S 5ft and at $218/mt fas for shredded. HMS 1&2 (80:20) increased by $1/mt to $203/mt fas. 


Upward momentum is expected in early June as Asian buyers gain clarity. Higher Japanese scrap offers are also expected to support US scrap containerized prices as June approaches.

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