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 despite limited demand. Asian buyers remain wary of buying at higher prices as Thanksgiving holiday, a shortage of containers and vessel delays bothered them this week.



The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $314/mt cfr, up by $6/mt Taiwan from the prior day, while it rose by $11/mt from the prior week (Nov 19). A few deals were heard at $305-315/mt cfr this week. Many small mills held their bids at $300/mt cfr. 


Feng Hsin raised finished steel prices by TWD300/mt ($10.5/mt) this week to offset increased input costs. Domestic ferrous scrap price also rose by TWD300/mt and are likely to move up amid higher imported offers. Finished steel demand in Taiwan is stable but margins are squeezed. 


US-based yards offered HMS 1&2 (80:20) in FEUs at $315-320/mt cfr. Prices are expected to rise with increased buying by Turkish importers. The Davis Index for US-origin HMS 1&2 (80:20) in Turkey rose by $14/mt on Wednesday from Nov 19 and $52/mt from Nov 2. While demand is limited, rising offers are pushing ferrous scrap prices up. Traders indicated that container shortage and delay in shipments have made importers prefer scrap from other origins.


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $11/mt, $13/mt,$13/mt, and $11/mt to $341/mt cfr, $321/mt cfr, $331/mt cfr, and $350/mt cfr, respectively. No deals were heard for the above grades as mills were wary of rising offers.


Offer for HMS 1&2 (80:20) in TEU from Australia and New Zealand were at $300-305/mt cfr, while bids were at $295/mt cfr. In the bulk market, offers for Japanese HMS 1&2 (50:50) were at $340/mt cfr, up by $10/mt from the week prior. Offers rose amid limited buying. 



In the containers market, the weekly index for US-origin HMS 1&2 (80:20) settled at $319/mt cfr Vietnam on Thursday, up by $8/mt. US-based suppliers offered the grade at $330/mt cfr, but no deals were heard.


Vietnamese mills negotiated for Japan and US-origin material in bulk. In the bulk market, offers for Japanese #2HMS were at $345-347/mt on Friday, which rose to $355/mt on Wednesday with no deals heard this week. Amid the Thanksgiving break, Vietnamese importers stayed away from any deep-sea booking. Mills focused on domestic scrap and are negotiating for Japanese scrap.


The weekly index for P&S 5ft and shredded rose by $9/mt and $12/mt to $344/mt cfr and $337/mt cfr, respectively, on Thursday. Vietnamese mills were also inquiring for Australian-origin scrap, said traders. Offers for P&S 5ft in TEU were at $350-355/mt, up by $10/mt from the week prior with no buying at these levels. 


In the containers market, prices for #1 busheling rose by $12/mt to $355/mt cfr from a week ago, and offers of $360/mt cfr in TEU were unacceptable for buyers.



Indonesian mills booked cautiously amid high US-origin offers and delays in shipments due to container shortage and lower vessel availability. Market participants are expecting scrap prices to rise further next week on rising offers. The difference between offers and bids in Indonesia is currently around $10/mt cfr. The weekly Davis Index for HMS 1&2 (80:20) rose by $3/mt to $338/mt cfr Jakarta. Offers rose to $345/mt cfr Jakarta on Thursday, with bids remaining at $330/mt cfr.


The indexes for P&S 5ft and #1 HMS rose by $7/mt and $5/mt to $356/mt cfr and $345/mt cfr Jakarta, respectively. On Thursday, deals for Australian blue steel heard at $361/mt cfr, while offers moved further up to $365/mt.


The weekly Davis Index for #1 busheling settled up by $4/mt at $360/mt cfr. No deals were heard for the grade as most mills restrained from buying at higher offers. 


The weekly Davis Index for shredded rose by $6/mt cfr to $345/mt cfr. Mills enquired shredded amid rising demand for billet from China but due to rising demand from Turkey, global scrap prices rose much higher than expected, said market participants. 


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