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

Imported scrap prices in East and Southeast Asian markets rose from the prior week. With US-suppliers raising offer prices, steel mills have turned their attention to Japanese and Russian bulk scrap. 



Taiwanese caved in and raised their bids amid rising global prices, albeit cautiously. A few deals were heard on Thursday at $280/mt cfr. The Davis Index for containerized US-origin HMS 1&2 (80:20), Thursday, rose by $3/mt to $279/mt cfr Taiwan from the day prior and by $7/mt from Oct 22. Prices for finished steel were also up this week, and are likely to rise further to offset increased input costs. 

 Offers for US-origin HMS 1&2 (80:20) in FEUs were at $282-285/mt cfr, and are expected to rise with an uptick in buying from Turkey. The Davis Index for US-origin HMS 1&2 (80:20) in Turkey rose by $7/mt from Oct 16.


 The weekly Davis Indexes for domestic HMS 1&2 (80:20) in South and North Taiwan were up by TWD300/mt ($10/mt) to TWD7,600/mt ($265/mt) and TWD7,800/mt delivered mill, respectively, on Tuesday. Offers increased on the back of firm global scrap prices and domestic ferrous scrap shortage. A freight rate hike on many seaborne routes has also increased cost for ferrous scrap imports.


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $7/mt, $8/mt,$7/mt, and $5/mt to $293/mt cfr, $284/mt cfr, $288/mt cfr, and $299/mt cfr, respectively. 

In the bulk market, a deal for Japanese HMS 1&2 (50:50) was heard at $295/mt cfr, offers subsequently kept rising amid increasing demand. More deals are said to be under negotiation, with no confirmation of trades. 



In the containers market, the weekly index for US-origin HMS 1&2 (80:20) settled at $293/mt cfr Vietnam on Thursday, up by $9/mt. Offers for the grade from the US were at $295-298/mt cfr, while the asking price for Australian material was at $305/mt cfr. Bids by other Asian countries were more lucrative and thus, sellers largely stayed away from the Vietnam market. 

Vietnamese mills, on the other hand, negotiated for Japan and US-origin material in bulk and containerized trades took a backseat. Japanese ferrous scrap export prices also started rising this week, which again kept trades limited.  


The weekly index for P&S 5ft and shredded rose by $11/mt and $13/mt to $311/mt cfr and $308/mt cfr, respectively, on Thursday. Offers for P&S 5ft were at $315/mt with no buyers at these levels.

In the containers market, prices for #1 busheling rose by $8/mt at $318/mt cfr from a week ago, and offers of $320-325/mt cfr were unacceptable for buyers. 


In the bulk market, Japanese #2HMS was sold at $308/mt cfr Vietnam on Friday. Offers for HMS 1&2 (50:50) from Hong Kong were at $310/mt, up by $5-10/mt from the week prior. Japanese shredded scrap was offered at $330-333/mt cfr. 


Indonesian mills were unwilling to book material this week on rising offers for US-origin material and declined activity due to national holidays until Friday. Market participants are expecting scrap prices to rise further next week amid global cues and an increase in domestic demand.


The weekly Davis Index for HMS 1&2 (80:20) rose by $7/mt to $293/mt cfr Jakarta. A few offers were at $295/mt cfr Jakarta on Thursday, with no deals heard. 


The indexes for P&S 5ft and #1 HMS rose by $2/mt and $12/mt to $316/mt cfr and $300/mt cfr Jakarta, respectively. Deals were heard for P&S 5ft in containers at $315/mt cfr early this week. But, mills opted out of the market subsequently. 

The weekly Davis Index for #1 busheling, shredded scrap rose by $3/mt, and $10/mt to $328/mt cfr and $313/mt cfr Jakarta, respectively. Offers for #1 busheling from Malaysia and Singapore were at $340/mt cfr, while bids were at $325-327/mt cfr. Traders expect Indonesian mills to start bookings on Monday.


Billet imports into the country could reduce with the extension of the scrap registration deadline. Traders are offering billets at $450/mt cfr SE Asia made in blast furnaces, with no deals reported. 



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