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-based suppliers raising offer prices amid tight supply. 



The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $385/mt cfr Taiwan, up $2/mt from the prior day, while it rose by $37/mt from the prior week (Dec 10). A few deals were heard at $350/mt cfr early in the week, while on Wednesday trades closed at $385-390/mt. Many small mills held bids at $350-360/mt cfr. Taiwanese buyers indicated that current offers in containers are not workable and they will continue to focus on domestic scrap.


With strong Turkish buying and rising Japanese scrap offers, traders are expecting global scrap prices to maintain an uptrend in December, but are still cautious of a sudden downtrend amid limited finished steel demand.


Feng Hsin raised finished steel and domestic ferrous scrap prices by TWD600/mt ($10.6/mt) on Monday from the prior week. Mills are expected to raise prices further in order to keep domestic suppliers interested. 


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $50/mt, $37/mt, $59/mt and $54/mt to $429/mt cfr, $396/mt cfr, $425/mt cfr and $440/mt cfr, respectively. A deal was heard for shredded at $425/mt on Wednesday, while most buyers stayed away from rising offers.


In bulk, a deal for Japanese HMS 1&2 (50:50) heard at $440/mt cfr Taiwan.


US-based yards offered HMS 1&2 (80:20) in FEUs at $400-410/mt cfr on rising Turkish buying. The Davis Index for US-origin HMS 1&2 (80:20) Wednesday rose by nearly $6/mt from the prior day. Turkey’s index rose by $73/mt from Dec 01.


While demand is limited, rising offers are pushing ferrous scrap prices up in Taiwan. Traders indicated that container shortage and delays in shipments have made importers slow down purchases as they expect a correction in global scrap markets in January. 


After revision, Feng Hsin’s base offers for rebar at TWD16,700-17,000/mt ex-works southern and northern mills. 



Increase in Japanese and US ferrous scrap offers have forced steel mills to hold back new scrap bookings. Japanese domestic scrap raised offers further on Thursday, but no deals concluded. Traders indicated that negotiations are but mills are cautious of a correction in global prices. They are closely watching Turkish buying before any purchase, indicated market participants.


In the containers market, the weekly index for US-origin HMS 1&2 (80:20) settled at $400/mt cfr Vietnam on Thursday, up by $43/mt. There is limited supply from the US and Japan, while offers are expected to rise further next week, said traders. 


Buyers stayed away from containerised scrap amid container shortages and vessel delays. 


The weekly index for P&S 5ft and shredded rose by $49/mt and $40/mt to $430/mt cfr and $418/mt cfr, respectively, on Thursday, amid rising offers. 


Prices for #1 busheling in containers rose $45/mt to $435/mt cfr from a week ago, and offers of $450-460/mt cfr in TEU were unacceptable for buyers.



Indonesian mills were quiet this week amid rising US-origin offers, delay in shipments and the approaching exporter registration deadline of Jan 1. Many yards stayed away from offering scrap to Indonesia due to the registration norm. No deals were heard this week and is expected to remain the same till there is clarity on the new procedure.


The difference between those few offers and bids in Indonesia stayed around $20-30/mt cfr. The weekly Davis Index for HMS 1&2 (80:20) rose by $42/mt to $413/mt cfr Jakarta. Offers rose to $420-430/mt cfr Jakarta on Thursday, while no major bids were heard.


The indexes for P&S 5ft and #1 HMS rose by $48/mt and $43/mt to $433/mt cfr and $418/mt cfr Jakarta, respectively. No deals were heard this week. The weekly Davis Index for #1 busheling rose by $44/mt to $440/mt cfr, while the index for shredded rose by $45/mt cfr to $425/mt cfr.

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