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

Ferrous scrap trading largely wrapped up for the July cycle on Friday with secondary grades holding unchanged and prime grades increasing by $20/gt compared to June settled prices. The US ferrous markets followed a trend that began in Detroit on Wednesday with little variance, although some softness emerged for certain grades by Friday.

 

In Chicago, prime grades #1 bundles and #1 busheling moved up by $20/gt to $638/gt delivered and $633/gt delivered, respectively. Secondary grades were flat with #1 HMS at $472/gt and P&S 5ft unchanged at $511/gt delivered Chicago consumer. Mostly, #1 HMS moved in the range of $470-475 although the full range includes $460-500/gt based on seller and starting point. P&S 5ft deals were struck at $510/gt for the most part with a few tons moving at $515/gt in Chicago.

 

Philadelphia also saw a $20/gt increase in prime with #1 busheling settling at $580/gt delivered while secondary grades were flat with #1 HMS holding unchanged at $457/gt delivered, P&S 5ft at $465/gt delivered, and shredded at $496/gt delivered Philadelphia mill.

 

In Detroit #1 busheling continues to transact at wide-ranged numbers of $620-675/gt with the index settling up $20/gt at $646/gt delivered. P&S 5ft was flat at $495/gt delivered while shredded remained unchanged at $500/gt delivered Detroit consumer.

 

The Carolinas encountered an increase of $10/gt on #1 busheling and traded sideways on secondary grades. The monthly Davis Index for #1 busheling rose by $10/gt to $618/gt delivered while #1 HMS, machine turnings, P&S 5ft, and shredded trended unchanged at $449/gt, $381/gt, $466/gt, and $471/gt delivered mill, respectively. 

 

In NE Arkansas, #1 busheling rose by $14/gt to $657/gt delivered while #1 HMS declined by $2/gt to $482/gt delivered as some mills used the opportunity to decrease prices in the latter part of the trading week. Machine turnings fell by $6/gt to $423/gt delivered, but P&S 5ft and shredded were unchanged at $506/gt and $517/gt delivered mill, respectively. 

 

The market’s early sentiment for August scrap trading foresees a potential softness in prices, especially for secondary materials, which are in ample supply and moved easily at sideways numbers throughout all markets. Still, a few areas reported some downward pressure on material such as machine shop turnings and #1 HMS in later deals. Some market participants point to very low inventories at the yards after July deliveries and not necessarily a spike in feedstock flows, which could result in sideways moves in August.

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