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

Imported scrap prices in East and Southeast Asian markets increased from the prior week with US-based suppliers raising offer prices amid tight supply due to Christmas and New Year Holidays. 



The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $435/mt cfr Taiwan, up $3/mt from the prior day, while it rose by $53/mt from the prior week (Dec 17). A few deals heard at $430-435/mt cfr this week, with offers rising on Thursday to $440-450/mt. Many small mills held bids at $425-435/mt cfr. Taiwanese buyers indicated that very few offers were received from the US due to holidays and ferrous scrap shortage.


Rising offers in containers are not workable for many mills and they will continue to focus on domestic scrap, said traders. With strong Turkish buying and rising Japanese scrap offers, traders are expecting global scrap prices to trend up in January, but are cautious of a sudden fall amid limited steel demand.


In bulk, deals for Japanese shindachi and HS heard at $487/mt cfr Taiwan this week. Offers for HMS 1&2 (50:50) heard at $460-470/mt cfr, with no deals confirmed.


Feng Hsin Steel on Monday raised rebar and ferrous scrap prices by TWD1,000/mt ($35.5/mt) and TWD1,200/mt, respectively. Mills are expected to raise prices in order to keep domestic suppliers interested.


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $44/mt, $47/mt, $40/mt and $40/mt to $473/mt cfr, $443/mt cfr, $465/mt cfr and $480/mt cfr, respectively.


US-based yards offered HMS 1&2 (80:20) in FEUs at $445-455/mt cfr on rising Turkish buying. The Turkish Index for US-origin HMS 1&2 (80:20) Wednesday rose by $2.2/mt from the prior day. Turkey’s index rose by $112/mt from Dec 1.


Traders indicated that container shortage and delays in shipments have made importers slow down purchases. Many mills are finding current offers unviable.



Increase in Japanese and US ferrous scrap offers have forced steel mills to hold back new scrap bookings. Japanese domestic scrap raised offers on Thursday, but no deals concluded. Traders indicated that negotiations are on but mills are bidding lower than other Asian countries. 


In the containers market, the weekly index for US-origin HMS 1&2 (80:20) settled at $428/mt cfr Vietnam on Thursday, up by $28/mt. Buyers stayed away from containerised scrap amid container shortages and vessel delays. 


The weekly index for P&S 5ft and shredded rose by $33/mt and $32/mt to $463/mt cfr and $450/mt cfr, respectively, on Thursday, amid rising offers. Prices for #1 busheling in containers rose $30/mt to $465/mt cfr from a week ago, and offers of $480-490/mt cfr in TEU were unacceptable for buyers.


In bulk, few offers for US-origin HMS 1&2 (80:20) were at $490/mt cfr with no deals heard.



Indonesian mills were quiet this week amid approaching exporter registration deadline of Jan 1 and suppliers shifting focus to other Asian countries. No deals were heard this week. Scrap trade is expected to remain dull till there is clarity on the new scrap import policy.


Buyers stayed away from bidding amid bullish offers. The weekly Davis Index for HMS 1&2 (80:20) rose by $11/mt to $424/mt cfr Jakarta. Offers rose to $430-440/mt cfr Jakarta on Thursday but no firm bids heard. With container shortage and rising freight cost, importers expect offers to rise further in January.


The indexes for P&S 5ft and #1 HMS rose by $10/mt and $12/mt to $443/mt cfr and $430/mt cfr Jakarta, respectively. No deals were heard this week. The weekly Davis Index for #1 busheling rose by $13/mt to $453/mt cfr, while the index for shredded rose by $10/mt cfr to $435/mt cfr.



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