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

Mills in Taiwan, Vietnam, and South Korea raised bids to match rising offers post-holidays. Imported ferrous scrap offers to Asian destinations rose amid tight supply and rising demand from Turkey and other countries.


US exporters raised offers for bulk HMS 1&2 (80:20) to South Korea from USWC to $440-450/mt on Thursday. Offers are expected to rise further on strong demand and global scrap shortage.



The Davis Index for containerized US-origin HMS 1&2 (80:20), Thursday, rose by $17/mt at $388/mt cfr Taiwan with bids catching up to rising offers. US-based exporters raised offers to $390-400/mt in anticipation of a rise in finished steel demand post-holidays. The index rose by $20/mt from the prior week (Feb 11). 


Taiwanese mills bid low before holidays leading to exporters prefer other regions. With prices moving up, mills are expected to conclude deals this week. Domestic scrap shortage and low inventory forced many buyers to resume procurement.


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by by $25/mt, $23/mt, $29/mt and $25/mt $421/mt cfr, $401/mt cfr, $414/mt cfr and $429/mt cfr, respectively. Mills have turned cautious amid a rise in offers for Japanese ferrous scrap after Kanto and Kansai tender. Buyers are negotiating for Japanese and US scrap to secure deals before prices go up further. No deals heard this week, but traders expect bookings to resume soon.


In the domestic market, Feng Hsin is heard to have raised ferrous scrap bids by TWD500/mt on Wednesday to procure domestic scrap instead of imports.


In bulk, offers for HMS 1&2 (50:50) rose to $415/mt cfr Taiwan on Thursday.



Vietnamese mills have raised bids post-holidays but still prefer to buy bulk scrap from Japan and Russia. Offers for Russian 3A scrap heard at $450/mt but no deals confirmed. 


A deal for Japanese #2 HMS heard this week at JPY39,005/mt ($369.36/mt) fas while offers rose to $420-430/mt cfr. Mills negotiated with Japanese, US and Russian exporters on Thursday. 


Mills are cautiously checking Hyundai bids and Turkish buying prices before any confirmations. Hyundai raised bids for Japanese scrap post-Kansai tender for #2 HMS at JPY40,500/mt fob and HS, shredded and busheling (shindachi) at JPY44,500/mt fob and HMS 1&2 (50:50) at JPY41,000/mt fob.


In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled at $398/mt cfr Vietnam up $18/mt from the prior week. While Vietnamese mills raised bids at $390/mt, offers rose to $405/mt, but no deals heard. 


The weekly index for P&S 5ft and shredded rose by $12/mt and $14/mt, to $418/mt cfr and $409/mt cfr, respectively, on Thursday, amid rising offers.


In bulk, offers for Hong Kong HMS 1&2 (50:50) were at $410/mt. Offers for Japanese #2 HMS rose by $15-20/mt to $430/mt, while bids were at $418/mt on Thursday.



Indonesian mills have started raising bids and some deals were heard this week. Buyers are cautious of new bookings as many yards have registration expiry in March. Traders are negotiating deals from Hong Kong, Australia, Singapore, and the US but are wary of rising prices.


The weekly Davis Index for HMS 1&2 (80:20) rose by $17/mt to $398/mt cfr Jakarta. Limited deals heard at $395-400/mt cfr Jakarta on Thursday. Mills preferred ferrous scrap from Malaysia and Hong Kong for immediate requirements and to avoid delays in shipment.

The indexes for P&S 5ft and shredded rose by $8/mt and $10/mt at $418/mt cfr and $410/mt cfr Jakarta, respectively. 


The weekly Davis Index for #1 busheling rose by $18/mt at $434/mt cfr. Offers for New Zealand origin P&S 5ft heard at $435/mt cfr Jakarta, up by $10/mt from the prior week. Limited deals were heard for the grade as most mills preferred to wait amid rising global scrap prices.



Tokyo Steel raises domestic scrap bids by JPY2,000/mt ($19/mt) at Utsunomiya works to JPY39,000/mt and by JPY500/mt at JPY39,000/mt delivered Okayama, JPY38,500/mt delivered Kyushu and JPY38,000/mt delivered Takamatsu, effective Feb 19. Prices were unchanged at JPY39,000/mt delivered Tahara plant.



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