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


Higher Kanto bids pushed up ferrous scrap offers in Taiwan even as mills booked limited volumes amid sluggish steel demand. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) Thursday rose by $3/mt to settle at $275/mt cfr Taiwan from Wednesday, while it rose by $5/mt from the prior week. 


Deals for HMS 1&2 (80:20) were heard at $270-280/mt on Thursday. Market participants informed that while offers are rising Taiwanese mills are limiting volumes as they seek low-priced scrap from South American yards. Only a few deals were heard at $280/mt, but offers are expected to rise further to $285/mt next week, said traders.


Turkish scrap market was active with increased buying this week. The index settled at $302.4/mt, up approx $11/mt on Tuesday from September 1. Due to high bids for Kanto tender on Wednesday and bullish Turkish bids lifting US-origin offers, Taiwanese mills have reduced buying and have not concluded any bulk deals this week.


Taiwan-based traders indicated that not all major mills are active at such high scrap prices. Deals for HMS 1&2 (70:30) from Jamaica were heard at $253/mt. Many suppliers from the US are still offering $270-275/mt cfr offers for HMS 1&2 (80:20) as buying interest remains weak. Finished steel prices in Taiwan have remained flat for the last three weeks despite a significant increase in iron ore and scrap prices. Steel mills preferred buying domestic scrap or delaying purchases. Offers for Australian-origin HMS 1&2 (70:30) were at $260-265/mt, with no trades heard. 


The weekly Davis index for containerized P&S 5ft, shredded and #1HMS were up by $9/mt, $2/mt and $5/mt, respectively, and settled at $295/mt cfr, $285/mt cfr and $280/mt cfr due to rising offers and low bids. No trades were heard for any of the grades.


Feng Hsin’s base offers for rebar and billets were flat for third week in a row at NT$14,500/mt ($495/mt) and NT$13,000/mt ex-works, respectively. Market participants indicated that a majority of Taiwanese mills could raise prices in the next week or two.



In the containers market, the weekly index for HMS1&2 (80:20) rose by $1/mt to $284/mt cfr Vietnam from the prior week, while up by $11/mt from Aug 20. Limited trades were heard due to low demand for finished steel and preference for domestic scrap.


Steelmakers said that an increase in auto production in Vietnam is driving imports of HRC into the country. Vietnamese mills could increase productions to pre-COVID levels amid improve demand from the auto sector. Further on, mills may increase finished steel prices next week to offset the rise in raw material cost.


The weekly index for #1 busheling and #1HMS rose by $1/mt and $4/mt, respectively, to $311/mt cfr and $289/mt cfr, respectively, on rising offers, while the index for shredded rose by $3/mt at $298/mt cfr on Thursday. No deals were heard for containerised ferrous scrap this week.


In the bulk market, importers are still buying cautiously as international scrap prices maintained an uptrend. More Vietnamese mills are exploring Russian market for lower-priced bulk. Offers for US-origin HMS 1&2 (80:20) were at $320/mt cfr on Thursday, while bids were at $305/mt cfr.


Shortage of domestic scrap and an expected recovery demand in finished steel demand could drive scrap bookings in September, said mill owners. 



Indonesian mills booked limited scrap amid rising offers this week. The weekly Davis Index for HMS 1&2(80:20) increased by $4/mt to $290/mt cfr Jakarta as offers rose to $295/mt. No deals were heard for the same.


Limited deals for P&S 5ft and #1 busheling were heard at $315/mt cfr and $320-325/mt cfr, respectively, with the weekly index settling up by $8/mt and $3/mt at $315/mt and $323/mt, respectively, on Thursday. Shredded index settled up by $5/mt to $303/mt cfr on higher offers while no trades were heard for the same. Some traders offered #1 busheling at $340/mt, but buyers refused deals at those levels.


Many traders and exporters are still unable to register with authorities to supply ferrous scrap into Indonesia, this is expected to create a shortage of scrap in the country, which will make raw material prices to further rise in coming weeks.


Indonesian mills were heard of buying domestic HMS 1&2(80:20) at IDR50,000,00/mt ($335/MT) and are aggressively chasing more scrap in the local market. 



After yesterdays Kanto bids and rise in Tokyo Tahara plant prices for all ferrous scrap grades by JPY500/mt, the Davis Index was flat, with #2 HMS settling at JPY26000/mt($245/mt) delivered Tahara plant on Thursday.


Export prices were up Thursday with Korean steelmaker Hyundai increasing bids for Japanese scrap by JPY1,000/mt from the prior week. Bids on Thursday for #2 HMS, HS, P&S 5ft and Shindachi were at JPY28,000/mt fob, JPY32,000/mt fob, JPY30,500/mt fob and JPY31,000mt fob Korea, respectively.


($1=NT$29; IDR14,891; JPY106)

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