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 to Japanese and Russian bulk scrap suppliers.  



Rising global prices led Taiwanese mills to cautiously raise buying prices. A few deals were heard on Thursday at $271/mt amid thin trades. The Davis Index for containerized US-origin HMS 1&2 (80:20), Thursday, rose by $6/mt at $272/mt cfr Taiwan from the day prior and by $8/mt from Oct 15. Price for finished steel remained unchanged in Taiwan this week, however, it is expected to rise to offset higher raw material prices, cited market participants.


Offers for US-origin HMS 1&2 (80:20) in FEU were at $271-275/mt and are expected to rise further with an uptick in buying from Turkey. The Davis Index for US-origin HMS 1&2 (80:20) in Turkey rose by $4/mt on Wednesday from Oct 15.


The weekly Davis Indexes for domestic HMS 1&2 (80:20) in South and North Taiwan rose by TWD175/mt ($6/mt) and TWD200/mt at TWD7,300/mt ($254/mt) and TWD7,500/mt delivered mill, respectively on Tuesday. Offers increased on the back of firm global scrap prices and a domestic scrap shortage.


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $4/mt,$6/mt,$6/mt and $8/mt to $286/mt cfr, $276/mt cfr, $281/mt cfr and $294/mt on rising offers while no deals were heard for any other grades in containerised scrap. Few deals for US-origin #1 HMS were were heard at $275/mt cfr.


In the bulk market, #2 HMS offers from Japan rose by JPY500-1,000/mt to JPY26,500-27,000/mt fob. Taiwanese mills were negotiating for bulk ferrous scrap from Japan, but no deals were heard.



In the containers market, the weekly index for US-origin HMS 1&2 (80:20) settled at $284/mt cfr Vietnam on Thursday, up by $14/mt. Offers for the same grade in FEU were at $290/mt cfr, while Australian-origin in TEU were at $300/mt. As per traders, no deals were heard as exporters preferred other importing countries who bids higher than Vietnamese mills.


With Vietnam concentrating more on purchasing Japanese and Russian bulk scrap, very few containerised deals were heard. Market participants indicated that the major reason for the same is the increase in US-origin containerised scrap prices. Japanese ferrous scrap export prices also started rising this week due to which no deals were confirmed. Market participants expect mills to buy more Russian A3 scrap.


The weekly Index for P&S 5ft and shredded rose by $15/mt to $300/mt cfr and $295/mt cfr on Thursday. Offers for P&S 5ft rose to $310/mt with no buyers at the same price.


In the containers market, the weekly indexes for #1 busheling rose by $16/mt at $310/mt cfr from a week prior. High offers at $315-320/mt cfr kept buyers away this week.


In the bulk market, an unconfirmed deal for US-origin HMS 1&2 (80:20) was heard at $310/mt cfr Vietnam. Offers for HMS 1&2 (50:50) from Hong Kong were at $300-305/mt. Japanese busheling (shindachi) was offered at $332/mt cfr, while bids were at $327/mt cfr. 

Vietnamese mills are exploring the Russian market for lower-priced bulk.



Indonesian mills were less active this week on rising US-origin offers. News of extension of export registration norm to Jan 1, 2021 boosted offer prices last week which remained stable during the week. 


Market participants are expecting scrap prices to rise amid global cues and an increase in domestic demand.


The weekly Davis Index for HMS 1&2 (80:20) rose by $1/mt to $285/mt cfr Jakarta. A few offers were reported at $285-290/mt cfr Jakarta on Thursday with limited deals heard at index price.


The weekly Davis Index for #1 busheling scrap rose by $1/mt to $326/mt cfr Jakarta amid higher offers at $327-330/mt cfr due to an increase in demand from Turkey and other Asian countries. Deals for Japanese #1 busheling were at $340/mt cfr on Thursday.


The indexes for P&S 5ft and #1 HMS rose by $1/mt and $2/mt to $314/mt cfr and $288/mt cfr Jakarta, respectively. Offers for P&S 5ft in FEU were heard at $310/mt, while in TEU were heard $313-315/mt cfr.


Indonesian billet imports are expected to reduce with the extension of the registration deadline. Traders are offering billets at $435/mt cfr SE Asia made in blast furnaces, but no deals from Indonesia were heard this week.



Tokyo Steel raised ferrous scrap prices for all grades by JPY1,000/mt at Okayama and Takamatsu works, effective Oct 21. This is the second raise after JPY500/mt on Monday. Price remained unchanged for the other three works from the prior week. The mill held finished steel prices flat for November deliveries.


The index price for shredded, HS, #2 HMS, #1 HMS and #1 busheling were at JPY27,500/mt, JPY29,000/mt, JPY27,000/mt, JPY27,700 and JPY28,000/mt delivered Okayama, respectively, on Thursday.


Domestic scrap shortage and rising demand for Japanese scrap in the domestic and export markets are supporting the price rise. 


($1= TWD29)

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