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 offering limited material amid lower collection due to cold weather. With firm Turkish buying and slower supplies from Europe amid renewed lockdowns, market participants expect offers to rise further in January. 



The Davis Index for containerized US-origin HMS 1&2 (80:20) rose $6/mt to settle at $446/mt cfr Taiwan. The index gained $11/mt from the prior week (Dec 31) on rising offers. Deals heard at $435-447/mt with mills increasing scrap imports due to low domestic scrap availability this week. Few offers rose to $450-455/mt cfr. Many small mills held bids at $425-430/mt cfr.


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $8/mt,$9/mt,$9/mt and $6/mt $481/mt cfr, $452/mt cfr, $474/mt cfr and $486/mt cfr, respectively. Deals for #1 HMS heard at $450/mt cfr on Thursday.


With firm Turkish buying this week and five bulk deals, traders are expecting ferrous scrap prices to be firm. Resumption of scrap imports in China lifted offers for Japanese scrap this week. The Turkish Index for US-origin HMS 1&2 (80:20) Wednesday fell by $3/mt from the prior day and prior week to $477.9/mt. Despite the fall in Turkish Index, container shortage and higher freight prices are expected to keep scrap prices up globally, said traders.


In bulk, 30,000mt US-origin scrap deal heard at $478/mt cfr Taiwan. While Japanese HS and HMS 1&2 (50:50) deals heard at $485/mt cfr and $455/mt cfr, respectively, this week. Taiwanese mills are cautiously looking at Turkish buying. A number of US cargo sales to Turkey and imminent cargo bookings from China have lifted suppliers sentiments. Offers for HMS 1&2 (50:50) rose to $460-465/mt cfr Taiwan on Wednesday.


Feng Hsin Steel raised rebar and ferrous scrap prices by TWD400/mt($14/mt) ex-works and TWD300/mt delivered mill, respectively, on Monday. After the revision, the steelmaker’s base price for rebar at TWD18,900-19,000/mt ex-southern mills. Mills are expected to raise scrap procurement prices to keep domestic suppliers interested.


Few South American suppliers offered HMS 1&2 (80:20) in FEUs at $410-420/mt cfr for February shipment. Traders indicated that container shortage and delays in shipments have slowed purchases as mills focus on bulk negotiations. 



Increase in Japanese and US ferrous scrap offers have forced steel mills to raise bids as Japanese suppliers raised offers this week amid strong demand from China and other Asian countries. Negotiations are on, said traders, but no deals have concluded.


In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled at $455/mt cfr Vietnam up by $13/mt from the prior week. Few offers and higher prices from US suppliers led Vietnamese mills to seek containerised scrap from other regions. 


The weekly index for P&S 5ft and shredded rose by $10/mt to $478/mt cfr and $468/mt cfr, respectively, on Thursday, amid rising offers. Prices for #1 busheling in containers rose $10/mt to $486/mt cfr from a week ago. Offers for oversized P&S 5ft from Hong Kong were at $480-485/ mt cfr with no deals heard.


In bulk, Japanese #2 HMS offered at $465-475/mt cfr with no deals heard.



Indonesian mills remained quiet amid lack of clarity on the new scrap import registration policy. Traders are expecting mills to start purchase from the next week. Limited offers heard this week as mills preferred billets. 


Buyers stayed away from bidding amid bullish offers. The weekly Davis Index for HMS 1&2 (80:20) rose by $14/mt at $438/mt cfr Jakarta. Offers rose to $440-450/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 shredded rose by $15/mt at $458/mt cfr and $450/mt cfr Jakarta, respectively. Offers for Hong Kong-origin P&S 5ft and rebar end cut mix were at $470/mt cfr Jakarta. The weekly Davis Index for #1 busheling rose by $15/mt at $468/mt cfr on rising offers.




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