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

Imported scrap prices in East and Southeast Asian markets were flat to up from the prior week with US-based suppliers offering limited material amid lower collection due to Christmas and New Year Holidays. With most parts of Europe under lockdown, market participants expect offers to be firm in January. 



The Davis Index for containerized US-origin HMS 1&2 (80:20) rose by $2/mt to settle at $435/mt cfr Taiwan, while it fell by $3/mt from the prior week (Dec 24) on lowered bids. No deals heard this week due to holidays. Few offers rose to $450/mt cfr. Many small mills held bids at $420/mt cfr.


Rising offers in containers are not workable for many mills, said traders, who lowered bids this week. With no Turkish buying this week and a correction in Chinese iron ore prices, traders are waiting to see how the market reacts after holidays. Market participants fear a sudden fall of scrap prices amid limited steel demand.


In bulk, no deals were heard this week. Taiwanese mills are cautiously looking at Turkish buying. A number of US cargo sales to Mexico and Brazil and imminent cargo bookings from China have lifted suppliers’ sentiments. The Turkish Index for US-origin HMS 1&2 (80:20) Wednesday rose by $9/mt from the prior day to $481.25/mt. Turkey’s index rose by $121.5/mt from Dec 1.


Feng Hsin Steel on Monday raised rebar and ferrous scrap prices by TWD900/mt ($32/mt) ex-works and TWD600/mt delivered mill, 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 were flat at $473/mt cfr, $443/mt cfr, $465/mt cfr and $480/mt cfr, respectively. No deals heard as suppliers held offers and buyers lowered bids.


US-based yards offered HMS 1&2 (80:20) in FEUs at $450/mt cfr for late January shipment. Traders indicated that container shortage and delays in shipments have slowed 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 suppliers raised offers this week ahead of holidays. Traders indicated that mills are trying to negotiate at lower prices, but no deals concluded yet.


In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled at $442/mt cfr Vietnam up by $14/mt from the prior week. Few offers and higher prices from US suppliers led Vietnamese mills to seek containerised scrap from other regions. Deals for the grade heard at $443-445/mt cfr Haiphong this week, while most bids remained at $430/mt cfr.


The weekly index for P&S 5ft and shredded rose by $5/mt and $8/mt to $468/mt cfr and $458/mt cfr, respectively, on Thursday, amid rising offers. Prices for #1 busheling in containers rose $11/mt to $476/mt cfr from a week ago. Offers for P&S 5ft from US were at $470-475/ mt cfr with no deals heard.


In bulk, Japanese #2 HMS and HS offered at $460/mt cfr and $470-490/mt with no deals heard.



Indonesian mills were quiet this week amid approaching exporter registration deadline of Jan 1. Few limited volume deals heard this week. The market 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) flat $424/mt cfr Jakarta. Offers rose to $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 were flat at $443/mt cfr and $430/mt cfr Jakarta, respectively. Deals were heard this week for Singapore and Hong Kong-origin P&S 5ft at $450/mt cfr Jakarta . The weekly Davis Index for #1 busheling and shredded were flat at $443/mt cfr to $435/mt cfr on Thursday.


Traders indicated mills are analyzing Chinese and Turkish scrap buying and finish steel prices before purchasing raw material for January.



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