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

Imported ferrous scrap prices in Southeast Asia and East Asia dropped by $10-15/mt from the week prior as the suppliers closed deals at lower levels. The fall in global containerised scrap prices was led by Turkey, where the Davis Index for US-origin HMS 1&2 (80:20) decreased by $8/mt to $284.5/mt cfr Turkey on Wednesday from $292.50/mt cfr a week ago 


Japan’s domestic ferrous scrap prices remained flat though the bids from East Asian bulk cargo buyers dropped by JPY500-1,000/mt from a week ago. Japanese #2 HMS was offered at JPY 26,000/mt fob Japan with bids at JPY25,500/mt. A small bulk cargo of H1&H2 (50:50) traded at JPY26,000/mt fob Japan. 



Taiwan’s imported scrap prices fell by $9-14/mt from the prior week amid thin trades. The Davis Index for US-origin HMS 1&2 (80:20) in containers settled at $253/mt cfr Taiwan, down by $9/mt from a week ago. Trades for 40 feet containers concluded at $252-255/mt cfr Taiwan, early in the week, but bids fell to $250-253/mt cfr Taiwan in the latter half of the week. US-origin HMS 1&2 (90:10) traded at $257-258/mt cfr Taiwan.


Most mills are likely to halt operations between Jan 24-31 for Lunar New Year holidays, said traders. Domestic scrap and rebar prices fell NT$200/mt ($6.65/mt) in the first half of the week. Japanese origin scrap remained competitive, even as buyers delayed trades. The Davis Index for Japanese bulk H1&H2 (50:50) scrap fell by $5/mt to $269/mt cfr Taiwan, from the prior week. 



A South Vietnamese mill booked Japan-origin HS in small bulk cargo at $303/mt cfr Vietnam. Mills have turned cautious anticipating further drop in global scrap prices along with a fall in domestic HRC and billet prices. A bulk cargo for HMS 1&2 (80:20) mixed was booked at $295/mt cfr Vietnam. The Davis Index for US-origin HMS 1&2 (80:20) in containers fell to $262/mt cfr Vietnam, down by $14/mt from a week ago. Japanese HMS 1&2 (50:50) in bulk traded at $280-285/mt cfr Vietnam, down $5/mt from a week ago. 



Indonesian ferrous scrap import trades reduced by $10/mt as the week progressed in the run-up to Lunar New Year holidays. Traders struggled to find buyers as demand dropped ahead of holidays. The Davis index for P&S 5ft scrap in containers settled at $305/mt cfr Jakarta, down $10/mt from the week prior. Europe, Brazil and UK origin P&S traded in containers at $305-307/mt cfr Jakarta. 

The weekly index for busheling settled at $319/mt cfr Jakarta with no major trades reported this week. A leading supplier offered P&S at $320/mt cfr Jakarta. The Davis Index for US-origin shredded in containers settled at $296/mt cfr Jakarta, down by $10/mt from the prior week. 

The index for HMS 1&2 (80:20) settled at $267/mt cfr Jakarta, down $7/mt from the prior week. Bids from steel mills have dropped to around $265/mt cfr in line with lower global scrap prices as the mills turned cautious and shied away from bulk volumes. 



Trades for containerised HMS 1&2 (80:20) Australia and US-origin closed at $290-293/mt cfr Chattogram Port to major steelmakers in Bangladesh. South America-origin HMS 1&2 (80:20) traded at $285-287/mt cfr Chattogram, with healthy buying interest at these levels. 



Imported shredded scrap in containers traded at $298-300/mt cfr Nhava Sheva, down $10-12/mt from the prior Friday. Mills were only interested in booking for their immediate requirements as they sought price direction from the global scrap market. UAE-origin #1 HMS traded at $303-305/mt cfr Nhava Sheva. Indian mills paid a premium for ferrous scrap compared to other Indian subcontinental countries as spread between scrap and finished steel widened in the past two weeks. 


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