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

Imported scrap prices in East and Southeast Asian markets dropped by $5-8/mt from the prior week, pressured by a bearish Chinese steel futures market. Buyers stayed away from imported scrap trades amid a decrease in iron ore prices and HRC prices.    


Softening global markets weakened the ferrous market in Taiwan. Also, trading may remain thin for the next few days due to the Moon festival from Oct 1-4 and national holidays from Oct 9-11. 


The Davis Index for containerized US-origin HMS 1&2 (80:20), Thursday, was unchanged at $273/mt cfr Taiwan from the day prior but fell by $11/mt from Sept 17. Bids declined to $270/mt cfr Taiwan, also weighed down by a fall in domestic scrap.  

Finished steel prices in Taiwan fell by TWD400/mt this week. Amid pressure on the finished steel market, Feng Hsin Steel lowered purchase prices for domestic HMS scrap by TWD300/mt or $10/mt.

Buyers placed limited bids of $260/mt cfr South American HMS 1&2 (80:20) this week. 

The weekly Davis Indexes for containerized P&S 5ft, shredded, #1 busheling and #1HMS declined by $7/mt, $5/mt, $10/mt, and $6/mt to $293/mt cfr, $281/mt cfr, $295/mt cfr, and $275/mt cfr, respectively. Offers were heard for P&S 5ft at $295/mt cfr. 


In the containers market, the weekly index for HMS 1&2 (80:20) settled unchanged at $283/mt cfr Vietnam on Thursday. Amid the holiday season, trades have also dipped in Vietnam like other Southeast and East Asian markets. 

Mills are waiting for prices to decline further since the present finished steel price levels are unsupportive for imports. 

Japanese busheling (Shindachi) offers to Vietnam were at $328/mt cfr on Thursday, while HS export offers were at $305/mt cfr Vietnam on Wednesday with no deals heard. The index for Japanese HMS 1&2 (50:50) dropped by $5/mt to $295/mt cfr Vietnam with few trades heard at $295-297/mt cfr on Wednesday. A few bids for the grade were also at $290-295/mt cfr Vietnam.

In the container market, the weekly indexes for #1 busheling, shredded and P&S 5ft were unchanged at $312/mt cfr, $293/mt cfr, and $305/mt cfr, respectively. 


Vietnamese mills, including Formosa, lowered prices of HRC by $10-15/mt this week to stay competitive. With a decline in China’s domestic demand, mills in the country have resumed exports at lower prices. 


In the bulk market, importers are still buying cautiously as international scrap prices are on a downward trend. More Vietnamese mills are exploring the Russian market for lower-priced bulk. Offers for US-origin HMS 1&2 (80:20) were at $305/mt cfr on Thursday, while bids dropped below $300/mt cfr Vietnam. Japanese HS and shindachi scrap in small bulk cargo were offered at $320/mt cfr Vietnam, while no major deal was heard. 


Shortage of domestic scrap and hopes of recovery in finished steel demand could drive scrap bookings in October. 



Indonesian mills focused on domestic scrap purchases this week. The implementation of new regulations that came into effect from Oct 1 kept buyers away from imports. The rules lack clarity. Thus, traders are looking to explore other Asian markets. 


Market participants are expecting prices to soften amid weak demand in the auto and infrastructural sectors. 


The weekly Davis Index for HMS 1&2 (80:20) fell by $5/mt to $285/mt cfr Jakarta. A few offers were reported at $290/mt cfr Jakarta on Thursday with no buying interest. 


The weekly Davis Index for P&S scrap rose by $1/mt to $314/mt cfr Jakarta amid limited deals at $315/mt. 

The indexes for #1 busheling and shredded fell by $5/mt to $320/mt cfr Jakarta, and by $4/mt to $298/mt cfr Jakarta, respectively. 

Indonesian billet imports are expected to rise over the next couple of months as ferrous scrap imports have slowed registration called BET could be delayed as government offices are working at lower capacity due to the pandemic.


Traders were offering billets at $445-450/mt cfr SE Asia made inc blast furnaces. A trade for 40,000mt billets was heard at $430/mt fob India. Billets made in induction furnace billets are being offered at $415-420/mt fob India with no buyers this week. 

A decline in Iranian billet offers to $395-400/mt fob has weighed down South East Asian billet and ferrous scrap import sentiment. 



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