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


Imported scrap prices in Taiwan dropped further this week on persisting low finished steel demand, a seasonal phenomenon in summers. The Davis Index for containerised US-origin HMS 1&2 (80:20) rose by $1/mt to $227/mt cfr Taiwan from Wednesday but fell by $6/mt from the prior Thursday. Few deals were heard at $225-230/mt cfr for US-origin HMS 1&2 (80:20) this week. 


The Davis index for containerised shredded settled at $241/mt cfr Taiwan, down by $8/mt from last Thursday. Few deals were heard at $240/mt cfr Taiwan for US-origin #1 HMS and South American-origin #1 HMS traded at $235/mt cfr Taiwan. The index for the grade settled at $235/mt cfr, down by $5/mt from the prior week. 


P&S 5 ft and #1 busheling’s weekly index settled at $244/mt cfr and $247/mt cfr Taichung, respectively, both down by $5/mt with no major trades heard. A decrease in domestics scrap prices by TWD200/mt and low demand from Tukey and South Asian markets made traders lower their offers. Exporters, however, are hoping for prices to be on an upward graph next week driven by higher bids by JPY1500/mt fob in Japan’s Kanto tender than the present price levels. The UK yards are also unwilling to lower their offers as imported HMS 1&2 (80:20) prices in Turkey flatlined this week at $255/mt cfr with expectations of a rise in the coming days. 


In small bulk markets, the weekly index for Japanese HMS 1&2 (50:50) settled at $240/mt cfr Taiwan with a few trades reported at those levels. After the Kanto tender results, Japanese suppliers have increased their offers, with buyers resisting those levels.



Indonesian ferrous scrap prices fell amid sluggish demand for finished steel and dampened global cues. A slowdown in the construction and infrastructure sectors has, in turn, pressured steel demand. 


Few trades for containerised P&S 5ft were heard at $265-270/mt cfr Jakarta and the index for the grade rose by $3/mt to $269/mt cfr. Importers bid for South American P&S 5ft at $265-270/mt amid higher offers from the US at $275/mt. Deals for #1 busheling in FEU’s were heard at $280-285/mt cfr with the weekly Davis Index settling at $282/mt cfr Jakarta, up by $7/mt. Prices for these grades rose due to their shortage in the domestic market. 


 The weekly index for US-origin HMS 1&2 (80:20) and #1 HMS scrap both declined by $6/mt to $236/mt and $245/mt cfr Jakarta, respectively. Deals for #1 HMS were at $245/mt cfr Jakarta.

No trades for US-origin shredded were heard with the index for the grade declining by $4/mt to $251/mt cfr Jakarta.



In bulk markets, Japanese-origin HMS 1&2(50:50) traded at $240-250/mt cfr Vietnam earlier this week but after the Kanto tender results, traders are likely to raise offers next week. 


In the containers market, a few bookings for HMS 1&2 (80:20) were heard at $225/mt cfr Haiphong and the weekly index fell by $10/mt to $225/mt cfr. The indexes for #1 busheling, P&S 5ft, and shredded fell by $3/mt,$2/mt, and $6/mt, to settle at $265/mt,$258/mt and $246/cfr Vietnam, respectively. 

With the news of steel mills including Hoa Phat’s sales increasing by 35.6pc in June, exporters are expecting higher bids for ferrous scrap next week.


In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $255-260/mt cfr South Vietnam and Hong Kong-origin material at $250/mt cfr North Vietnam. Offers for HS grade in bulk were at $265-270/mt cfr Vietnam, down by $10/mt from the prior week.


Southeast Asian billet prices were low with no demand from China and are expected to drop further in the coming days.  

($1=TWD29.4; JPY107.2)

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