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

The weekly Davis Index for HMS 1&2(80:20) rose by $4/mt to $275/mt cfr Jakarta as Indonesian importers bought ferrous scrap at prices higher than most Asian markets. Steel mills in Indonesia have ramped production amid increased demand from the infrastructure sector.



Mills ramped up production in Indonesia with some major infrastructure projects scheduled to commence this week. Amid a shortage of domestic ferrous scrap, mills sought imported scrap. Indonesian importers are buying at prices higher than most Asian markets, making it a preferred destination for containerized scrap exporters.


The weekly Davis Index for HMS 1&2(80:20) rose by $4/mt to $275/mt cfr Jakarta with trades at the index prices. Trades for containerized #1 busheling and shredded from the US were heard at $317/mt cfr and $285-290/mt cfr, respectively. The weekly indexes for #1 busheling and shredded rose by $7/mt and $4/mt to $317/mt cfr and $288/mt cfr Jakarta, respectively. 

The index for P&S 5ft rose by $4/mt to $307/mt cfr with deals for US-origin heard at $305-307/mt cfr. Few deals for Hong Kong-origin P&S 5ft were at $315/mt. Market participants are expecting a further rise in offers due to increased buying from Turkey.



In Taiwan, ferrous scrap offers were bullish this week supported by global cues. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) was flat at $258/mt cfr Taiwan from Wednesday, while rose by $3/mt from the week prior. 

Demand for finished steel continues to be under pressure due to which importers are booking limited volumes of scrap. Turkish prices continued to rise this week and the Davis Index for US-origin HMS 1&2 (80:20) rose by $5/mt in a week. Traders expect a further rise in offer prices amid increased buying in South East Asian countries.


Taiwanese mills bought South American HMS 1&2 (80:20) in limited quantities at $250/mt cfr this week, while deals for US-origin HMS 1&2 (80:20) were at $257-258/mt cfr. Offers in FEU were at $260-265/mt cfr Kaohsiung.


The weekly Davis index for containerized #1 busheling and P&S 5ft settled at $284/mt cfr and $282/mt cfr Taiwan, respectively, both up by $6/mt. Deals for P&S 5 ft were heard at $280-285/mt cfr.


The index for weekly shredded settled at $275/mt cfr Taiwan, up by $4/mt from the week prior on higher offers as no trades were heard.

Japanese small bulk cargoes of HMS 1&2 (50:50) were offered at $281-283/mt cfr Taiwan on Thursday, while bids were at $265-$270/mt. Market participants are trying to cope up with rising global prices but due to weak domestic demand, most buyers have reduced their purchase quantity. A shortage of domestic scrap in Japan is supporting higher prices.



In the containers market, the weekly index for HMS1&2 (80:20) rose by $6/mt to $265/mt cfr. The weekly index for #1 busheling increased by $5/mt to $303/mt cfr, while the index for shredded rose by $2/mt to $283/mt cfr. Vietnam has had limited containerised ferrous scrap trades in the last four weeks due to rise in COVID-19 infections. Rising offers have led buyers to focus on bulk bookings.


In the bulk market, Vietnamese mills booked US-origin HMS1&2 (80:20) at $295/mt, while deal were heard for HMS 1&2 (50:50) at $280/cfr. Offers for US-origin HMS1&2 (80:20) were raised to $300-305/mt cfr on Wednesday, while bids were at $298/mt cfr. 

Japanese-origin HMS 1&2 (50:50) was offered at $291/mt cfr Vietnam on Thursday, while P&S was offered at $303/mt cfr. Offers were up $10/mt from last week.


Shortage of domestic scrap and expected high demand for finished steel in September are driving recent scrap bookings, said mill owners. For August, the demand scenario looks bleak on the back of increasing COVID-19 infection. 

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