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

US West Coast ferrous scrap dock prices mostly trended flat or up, depending on grade as container and bulk scrap deals to Asia continued experiencing firm tags on active demand and tight supply.


Imported scrap deals for HMS 1&2 (80:20) at $292-294/mt cfr Turkey have climbed by $8-9/mt from $284-285/mt cfr in early October, providing support for higher scrap prices. A recent bulk deal to Bangladesh at around $321/mt on HMS 1&2 (80:20), P&S 5ft, and shredded scrap is about $9/mt higher than the average of an early August US-origin deal. 


Japanese domestic scrap prices were flat over the past week, but export offers rose on demand and expectations of increases on domestic scrap in the short term. Domestic scrap also trended flat in South Korea but increased in Vietnam, Thailand, and Taiwan. Various Asian mills are also seeking to improve domestic and export prices on finished steel, the prices for which have risen this past week. 


Malaysia’s domestic scrap prices slipped as the country extended its COVID-19 related lockdown. With higher import price options, domestic prices could rise next month as mills resume scrap purchases. 


Bangladeshi, Pakistani, and Indian scrap importers accepted higher scrap prices to meet mill capacity goals and on recovering finished steel demand. Given the strong price outlook of sideways to up into December, scrap buyers sought to buy before encountering further price increases. Pakistani buyers benefited from currency exchange improvements with a stronger Pakistani Rupee.


The weekly Davis Indexes in Portland were flat for HMS 1&2 (80:20) and shredder feed at $218/gt delivered and $186/gt delivered, respectively. P&S 5ft though, increased by $4/gt to $239/gt on increased payment schedules this week to attract the tight supply in advance of the mill scrap buys next week. 


The domestic price expectation for November continues to remain sideways for most grades with the possibility of slight increases on #1 busheling in some regions. Prices in Pacific Northwest remained relatively flat through October but are expected to strengthen in November on winter season changes in flow and strong demand domestically and for export. 


In San Francisco, the weekly indexes were rangebound with HMS 1&2 (80:20) flat at $234/gt delivered and P&S 5ft increasing by $1/mt to $246/gt delivered. Shredder feed remained unchanged at $155/mt delivered.  


The weekly Davis Indexes in Los Angeles climbed this week. Prices were flat officially, but docks were willing to pay a premium of up to $20/gt for large, high-quality loads. The indexes increased after two consecutive weeks of a flat trend with HMS 1&2 (80:20) and P&S 5ft rising by $8/gt to $191/gt delivered and $204/gt delivered dockside, respectively, and shredder feed decreasing marginally by $1/gt to $139/gt delivered.


Market participants continue reporting low scrap inventories at docks and scrap feedstock with increased difficulty in receipt of quality structural and cut grades in larger tonnages. The decline in P&S 5ft is attributed to dampened demolition activity this month. 


In Los Angeles, the containerized market remains strong with HMS 1&2 (80:20) deals increasing from $250-255/mt fas last week to $262-265/mt fas on Tuesday. P&S 5ft is trending at $276-280/mt fas. Asian buyers continue an interest in imported scrap with a premium on better grades.

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