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


The Davis Index for US-origin containerized HMS 1&2 (80:20), Thursday, fell by $2/mt to $429/mt cfr Taiwan with bids dropping to $420-425/mt cfr amid sluggish demand. US-based exporters kept offers at $430-435/mt due to supply constraints. The index fell by $7/mt from the prior week (March 4).


Few Taiwanese mills bid for Japanese HMS 1&2 (50:50) at $435/mt cfr down by $30/mt from the prior week on falling Japanese domestic scrap prices and post lower-than-expected bids at Kanto tender. Traders said most mills are yet to bid and are cautious of falling scrap prices in the international markets. Importers are also tracking bids placed by South Korean and Chinese mills.


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling fell by $15/mt, $11/mt, $11/mt and $15/mt $450/mt cfr, $435/mt cfr, $445/mt cfr, and $461/mt cfr, respectively. Mills have turned cautious amid slow finished steel demand.



Vietnamese mills lowered bids on global cues and still prefer to buy bulk scrap due to a short supply of empty containers. Post Kanto tender, importers are cautious and waiting for prices to fall further. 


Mills are tracking Turkish and Chinese purchases, with the Turkish index for HMS 1&2 (80:20) falling by $13.6/mt to $450.8/mt cfr on Wednesday from the prior week (March 4).


In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled down by $5/mt at $434/mt cfr Vietnam from the prior week. Vietnamese mills bids at $430/mt, while offers remained at $435-440/mt.


The weekly index for P&S 5ft and shredded, Thursday, fell by $5/mt and $11/mt, to $460/mt cfr and $449/mt cfr, respectively amid low bids from most importing destinations.


In bulk, offers for Japanese HMS 1&2 (50:50) fell by $5/mt to $455-460/mt from the prior week, while bids fell to $445-450/mt cfr. Two USWC bulk deals heard at $474/mt cfr and $477/mt cfr for shredded in the prior week.


Vietnamese steelmaker Formosa Ha Tinh (FHS) hiked its domestic hot-rolled coil (HRC) prices for April and May shipments on healthy demand and a positive outlook for HRC. The steelmaker has revised prices up by $45-50/mt after a gap of nearly two months. 


Formosa’s base price for SAE1006 HRC for April and May shipments would be the equivalent of $765/mt cif Haiphong and $770/mt cif Ho Chi Minh. 


In February, ferrous scrap imports into Vietnam decreased by 41pc to 321,623mt from the prior year, according to the country’s customs data. Ferrous scrap imports fell by 28pc compared to 413,248mt in January due to holidays and rising offers which were unviable for most Vietnamese mills. Imports from Australia were 43pc lower at 26,399mt from January. In terms of volumes, Japan remained the biggest exporter at 223,544mt, up 26pc from 177,175mt last month, but down by 37pc from 354,406mt in February 2020.



Indonesian mills limited bookings amid falling global ferrous scrap prices. Mills are also cautious of new bookings as many exporters are still processing export registration. Traders said that container shortages and reduction in buying prices from Turkey and China has kept sentiments bearish. Mills preferred Hong Kong oversized P&S with bids at $430-435/mt cfr this week.


The weekly Davis Index for HMS 1&2 (80:20) fell by $10/mt to $435/mt cfr Jakarta from the week prior. No deals were heard with bids falling in anticipation of a further fall.


The indexes for P&S 5ft and shredded fell by $18/mt and $15/mt to $460/mt cfr and $456/mt cfr Jakarta, respectively. Offers for US origin P&S 5ft fell to $465/mt, while bids were at $455/mt cfr. Traders indicated that offers fell by $30/mt but are still unviable for most mills.


The weekly Davis Index for #1 busheling fell by $25/mt to $465/mt cfr from the prior week with mills preferring domestic scrap and closely watching busheling purchase by other Asian countries.

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