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


Higher Kanto and Kansai tender 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) on Thursday rose by $3/mt to settle at $284/mt cfr Taiwan from Wednesday, while it rose by $9/mt from the prior week. 


Deals for HMS 1&2 (80:20) were heard at $283-285/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 with bids as low as $265/mt. They further indicated that this might be the peak for imported scrap offers and expect a correction anytime soon with the daily Davis Index for Turkey falling by $2.5/mt on Wednesday from Sep 10.


Taiwan-based traders indicated that not all major mills are active at such high scrap prices. Bids are as low as $270/mt. Finished steel prices in Taiwan were raised this week by $NT500/mt as mills like Feng Hsin passed on higher input costs to end-consumers. Steel mills preferred buying domestic scrap. 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 $4/mt, $9/mt and $8/mt, respectively, and settled at $303/mt cfr, $294/mt cfr and $288/mt cfr, respectively, due to rising offers. Few trades were heard at for P&S 5ft at $295-300/mt during the week.



In the containers market, the weekly index for HMS1&2 (80:20) rose by $10/mt to $294/mt cfr Vietnam from the prior week, while up by $11/mt from September 03. No deals were heard in containerised as Vietnamese mills were cautious amid a successive rise in imported scrap prices. Mills are waiting for a price correction as finished steel demand in Vietnam is still sluggish.


Steelmakers said an increase in auto production is driving imports of HRC into the country. Vietnamese mills could ramp up productions to pre-COVID levels amid improve demand from the auto sector. 


The weekly index for #1 busheling, shredded and P&S 5ft rose by $8/mt. $6/mt and $10/mt, respectively, to $319/mt cfr, $304/mt cfr and $315/mt cfr, respectively, on rising offers. No deals were heard for the same.


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 $315-320/mt cfr on Thursday, while bids were at $305/mt cfr. Japanese HS and shindachi scrap in small bulk cargo were offered at $330-335/mt cfr Vietnam, while a deal was heard at $310/mt cfr.  


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



Indonesian mills gradually increased buying while were cautious of the rising offers this week. The weekly Davis Index for HMS 1&2(80:20) rose by $6/mt to $296/mt cfr Jakarta as offers rose to $298/mt. No deals were heard for the same.


Few deals for P&S 5ft were heard at $320/mt cfr in TEU and $315/mt in FEU with the weekly Davis Index settling up by $4/mt to $320/mt, on Thursday. #1 Busheling and Shredded index settled up by $4/mt to $329/mt cfr and $307/mt. respectively, with no deals heard. 


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. Buyers may avoid scrap imports after Oct 1. Market participants are expecting prices to soften amid weak demand from auto and infrastructural sectors. 


Many billet importers have reduced imports as they are yet to exhaust their raw material inventory as steel demand remains low. Indonesian mills focused on buying local scrap to avoid any shortage in the coming weeks.



Mills delayed deals on expectations of the market softening in the next few days. Exporters from the US offered different grades of ferrous scrap to Thailand. Yards were able to sell 4,000 mt of mix grades in containers cfr Thailand. A deal for P&S 5ft, #1 Busheling and shredded mix concluded at $305-307/mt cfr on Friday which as per traders was a stress sale as supplier feared of a correction.

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