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

Imported scrap prices in East and Southeast Asian markets dropped by $5-10/mt from the prior week pressured by weak finished steel demand amid national holidays.   



Softening global markets weakened the ferrous market in Taiwan. Trading may remain thin for the next few days due to national holidays from Oct 9-11. The Davis Index for containerized US-origin HMS 1&2 (80:20), Thursday settled unchanged at $265/mt cfr Taiwan from the day prior but fell by $10/mt from Sep 24. Bids declined to $260-265/mt cfr Taiwan weighed down by little demand due to Moon festival holidays a week prior and national holidays this week. Limited deals were heard for the grade this week at $268/mt cfr and later $265/mt cfr.


The weekly Davis Indexes for domestic HMS 1&2 (80:20) in South and North Taiwan Thursday settled flat at TWD7,125/mt ($248/mt) and TWD7,300/mt delivered mill, respectively, from the prior week.


Buyers placed limited bids of $255-260/mt cfr South American for HMS 1&2 (80:20) this week. 

The weekly Davis Indexes for containerized P&S 5ft, shredded, #1 busheling and #1HMS declined by $12/mt, $5/mt, $9/mt, and $6/mt to $281/mt cfr, $276/mt cfr, $286/mt cfr, and $269/mt cfr, respectively. No deals were heard for the above grades.


In the containers market, the weekly index for HMS 1&2 (80:20) settled down by $10/mt at $273/mt cfr Vietnam on Thursday. Amid the holiday season, trades have also dropped in Vietnam like other Asian markets. Mills are waiting for prices to decline further since the present finished steel price levels are unsupportive for imports. 


The weekly indexes for containerised #1 busheling, shredded and P&S 5ft fell by $14/mt, $9/mt and $15/mt to $298/mt cfr, $284/mt cfr, and $290/mt cfr, respectively, on Thursday. Deals were heard for P&S 5ft at $290/mt cfr.


In bulk, #2 HMS deals were heard at JPY27,800-28,000/mt fob, equivalent to $295/mt cfr Haiphong. An HS export deal was heard at JPY30,500/mt fob, equivalent to $320/mt cfr Vietnam this week. More Vietnamese mills are exploring the Russian market for lower-priced bulk offers after Korean mill Dongkuk steel booked 30,000 mt A3 scrap at $286/mt cfr for November delivery on Wednesday.

Vietnamese billet exports were low this week as mills stayed away from trade during holidays. Offers for billets were at $445-455/mt cfr China, while no bids were heard.


A shortage of domestic scrap and hopes of recovery in finished steel demand could drive Vietnamese scrap bookings in October. 



Indonesian mills focused on domestic scrap purchases this week. Indonesian billet imports are expected to rise over the next couple of months as steel mills shift focus from imported scrap to other alternatives. 


The Indonesian government’s new guidelines for scrap imports require registrations by exporters and importers of scrap into Indonesia. A lack of clarity about new rules and delays in registration caused by reduced staff at government offices due to the pandemic has halted scrap imports into Indonesia. None of the traders renewed their ferrous scrap import license which expired on Oct 1. 

Market participants are expecting domestic scrap prices to stay flat amid stable demand in the auto and infrastructural sectors while a shortage of imported scrap.


The weekly Davis Index for HMS 1&2 (80:20) Thursday settled flat at $285/mt cfr Jakarta amid delays in import registrations. 

The weekly Davis Index for P&S, #1 busheling and shredded was flat at $314/mt cfr, $320/mt cfr and $298/mt cfr Jakarta amid no trades.


Traders were offering billets at $445-450/mt cfr SE Asia made in blast furnaces. Few suppliers expect a better market and revoked earlier offers. A Thailand-based mill bid for Iranian billets at $435-438/mt cfr on Wednesday.


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