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

US West Coast dock prices rose over the past week with docks lifting their scrap buying prices for dealers who received lower rates in the past. 


The Turkish Davis Index for US-origin HMS 1&2 (80:20) climbed by $44.4/mt to $502.20/mt cfr Turkey on Tuesday. In the past three weeks, the Davis Index has risen by $81.85/mt on the grade. Import prices are speculated to reach $530/mt cfr on the grade within the month by some market participants. The anticipated increase is supported by a boost in rebar sales, strong selling prices, and a tight global scrap market. Higher iron ore prices are also supporting stronger scrap price movements. 


The EU region encountered dock price increases of $29/mt while HMS grades in the UK rose by $14-18/mt. US docks also adjusted their prices upwards following a hot export scrap market led by higher Turkish import deals and a $50/mt surge in the recent Kanto scrap tender. The increase in finished steel goods along with domestic scrap price hikes is expected to support firm export offers in Japan. 


Domestic scrap prices increased in China, India, Turkey, South Korea, Taiwan, and Vietnam among other small scrap importers. Domestic supplies are tight amid high demand, which will continue to support import scrap prices if mills continue anticipating strong finished steel sales.


Scrap buyers from Bangladesh and Pakistan are expected to return after their Eid holiday in mid-May. The tight container market and higher freight costs are projected to encourage mills to engage in bulk buys. 


The weekly Davis Index in Portland for export yard scrap rose by $25/gt for #1 HMS to $364/gt delivered as regional docks became more aggressive with increases of $20-30/gt. P&S 5ft climbed by $14/gt to $376/gt delivered while shredder feed rose by $9/gt to $265/gt delivered. Some dealers succeeded in negotiating higher prices a few weeks back and continued their unchanged higher price level. 


Docks increased buying prices on export demand at higher prices as they compete to attract feedstock from Pacific Northwest mills. Given the export support, the US domestic scrap market could increase by $40-50/gt in June, translating to an increase of $25-30/gt in the region. 


In Los Angeles, the indexes increased with #1 HMS rising by $13/gt to $310/gt delivered and P&S 5ft by $12/gt to $320/gt delivered. Shredder feed remained unchanged again at $200/gt delivered. The prepared grades increased without an official price increase as loads were able to achieve higher buying prices. 


In San Francisco, the Davis Index rose as sellers expected higher prices. #1 HMS climbed by $9/gt to $334/gt delivered, while P&S 5ft rose by $12/gt to $346/gt delivered. Shredder feed increased by $11/gt to $227/gt delivered.


Container prices on HMS 1&2 (80:20) are reported at $385-400/mt fas from Los Angeles.

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