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

Asian buyers lowered imported ferrous scrap bids amid sluggish finished steel demand, cold weather and rising COVID19 cases. Offers were few as cold weather and lockdown extensions in Europe and other exporting countries restricted scrap collection. Most Asian mills are expected to reduce their purchase price this week in line with lowered bids placed by Turkish buyers. 



The Davis Index for containerized US-origin HMS 1&2 (80:20) Thursday rose $1/mt from the prior day to settle at $435/mt cfr Taiwan as US-based exporters offers were firm at  $435-440/mt. The index fell $11/mt from the prior week (Jan 7) as buyers lowered bids to $425-430/mt amid sluggish steel demand. Taiwanese buyers claimed the current offer prices were unviable. Limited deals heard at $435/mt this week with mills expecting a fall in global ferrous scrap prices in the coming days. 


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling fell by $15/mt,$12/mt,$14/mt and $15/mt $466/mt cfr, $440/mt cfr, $460/mt cfr and $471/mt cfr, respectively. Due to limited offers at high prices, few deals were heard this week. Taiwanese mills are closely following Japanese scrap purchases by Chinese buyers as they aim to negotiate for Japanese scrap at lower bids.


Some Taiwanese mills bid for HMS 1&2 (50:50) at $450/mt, $10/mt lower than last week but no deals were heard. With no further buying from China, after the initial deals in early January, importers expect a slow down in Chinese buying due to cold weather and rising Covid-19 cases. Importers opined that the difference of $60-70/mt between domestic and imported scrap prices in China are making imports unattractive.


With Turkish buyers lowering prices by $2/mt, traders are expecting ferrous scrap prices to fall globally. The Turkish Index for US-origin HMS 1&2 (80:20), Wednesday, fell by $2.67/mt from the prior day. Despite the fall, container shortage and higher freight prices are expected to keep scrap prices up globally, said traders.


In bulk, limited deals for Japanese #1 Busheling heard at $474/mt cfr Taiwan. Taiwanese and Korean mills are negotiating trades for Japanese scrap after evaluating Kanto tender on Jan 13, said traders.


Few mills sought South American HMS 1&2 (80:20) for February shipment. Traders indicated that container shortage and delays in shipments have made exporters stay away from the Asian markets.



Sluggish finished steel demand both in the domestic and exports markets led to mills lowering bids this week. Demand for steel imports from China and other Asian countries have declined amid harsh weather conditions and a resurgence of the pandemic.


In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled at $440/mt cfr Vietnam down by $15/mt from the prior week. Vietnamese mills reduced bids to $420-430/mt, while offers were firm at $455/mt. Traders expect offers to fall as mills are delaying buying to avoid high prices. 


The weekly index for P&S 5ft and shredded fell by $19/mt and $13/mt to $459/mt cfr and $455/mt cfr, respectively, on Thursday, amid lower bids. Offers for P&S 5 ft in containers rose $10/mt to $486/mt cfr from a week ago. Offers for oversized P&S 5ft from Hong Kong remained at $480/mt cfr with no deals heard. Offers for Japanese #1 busheling heard at $495/mt cfr with no deals confirmed. 


In bulk, Japanese #2 HMS offers fell by $5-10/mt from the prior week to $460-465mt cfr but no deals heard. 


Limited offers and deals were heard this week as mills lowered bid even as supplies remained tight and freight prices continue to rise amid the container shortage.



Indonesian mills remained quiet on slow domestic and export demand for steel. Many importers and exporters registered under the new scrap policy, but no deals heard. Traders were negotiating for ferrous scrap from Hong Kong, Singapore and the US, while Indonesian mills were more interested in shorter transit scrap this week. Negotiations for imported billets between Vietnamese seller and Indonesia mills heard at $600/mt cfr.


Buyers stayed away from firm offers. The weekly Davis Index for HMS 1&2 (80:20) fell $8/mt to $430/mt cfr Jakarta. Bids fell by $10/mt to $425/mt cfr Jakarta on Thursday. Offers for Hong Kong-origin HMS 1&2 (80:20) heard at $460/mt cfr.


The indexes for P&S 5ft and shredded fell by $7/mt and $5/mt at $451/mt cfr and $445/mt cfr Jakarta, respectively. Offers for Singapore-origin P&S 5ft heard at $480/mt cfr Jakarta. The weekly Davis Index for #1 busheling fell by $8/mt at $460/mt cfr on low bids. Few offers for busheling were active this week.

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