The Davis Indexes for dockside ferrous scrap on the US West Coast increased for the second straight week, supported by stronger export demand, tight supply, and higher prices to export destinations.
Domestic mills in Portland increased scrap prices by $10-15/gt during the early June domestic scrap trading week. Dock prices in the area also increased to attract inventories as sellers are preferring sales to mills although they require slightly more processing of the steel to meet melting requirements. HMS 1&2 (80:20) is approximately $190/gt at delivered to docks while mills are purchasing at $20/gt higher at $220/gt delivered.
Japanese domestic scrap prices have also risen supporting higher export scrap prices from the island. For example, small bulk Japanese HMS 1&2 (50:50) increased by $5-10/mt cfr Taiwan in the past week.
The weekly Davis Indexes in Portland increased for HMS 1&2 (80:20) by $21/gt to $190/gt delivered dockside, rose by $22/gt for P&S 5ft to $201/gt, and were up for shredder feed by $2/gt to $147/gt delivered.
In Los Angeles, the weekly Davis Index for HMS 1&2 (80:20) increased by $2/gt to $147/gt delivered dockside and rose for P&S 5ft by $4/gt to $167/gt delivered. The index for shredder feed increased by $8/gt to $106/gt delivered.
The indexes in San Francisco increased by $4/gt to $190/gt delivered dockside for HMS 1&2 (80:20), but were flat for P&S 5ft at $193/gt delivered. The index for shredder feed also held at $135/gt delivered.
In the containerized scrap market, prices for HMS 1&2 (80:20) increased by $5/mt from $215-220/mt fas to $220-225/mt fas from Los Angeles. Larger purchases are being reported this week on the grade with the potential for prices to rise in the range of $225-230/mt fas.