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

A rise in Southeast Asian billet offers to China, where the appetite for imports is strong, kept exporters optimistic. On Thursday, offers for Southeast Asian billets surged to $790-800/mt cfr China, up by $100/mt as business resumed post-Labour Day holidays. Firm billet export prices drove ferrous scrap upwards despite limited trading. 


Imported ferrous scrap prices in East Asian markets are steadily increasing despite slow demand. International bulk scrap prices surged amid tight supply and an uptick in demand.



Tokyo steelmakers hiked ferrous scrap purchase bids twice, the second time influenced by Kanto tender on Tuesday. There is a shortage in supply amid a surge in domestic demand, which aided the price hike. The latest bids for #2 HMS are at JYP49,000/mt at Tahara, JYP48,000/mt at Okayama, JPY47,500 at Kyushu, JPY46,000/mt at Utsunomiya, and JPY46,500/mt at Takamatsu; which is an average bid jump of $50/mt. The prices are likely to jump further. 



The weekly Davis Index for containerized #1 HMS rose by $27/mt to $471/mt cfr Taiwan port whereas the index for. shredded was up by $29/mt to $480/mt cfr Taiwan port. 

The indexes for P&S 5ft rose by $29/mt to $490/mt cfr Taiwan while #1 bushelling rose by $29/mt to $498/mt cfr Taiwan port. 

Demand continued to be under pressure which could lead to a drop in prices. Should the global prices continue to rally, buyers could shed their resistance and raise bids.



Vietnamese mills limited their purchases this week. But the announcement of a $100/mt price hike by Formosa steel for HRC June-July shipments is likely to boost steel prices and aid ferrous scrap imports in the near term. 

The weekly Davis index for containerized #1 HMS, Thursday, rose by $28/mt to $481/mt cfr Vietnam. Shredded, P&S 5ft and #1 bushelling rose to $488/mt, $498mt and $505/mt; up by $26/mt, $26/mt, and $25/mt, respectively. Offers for US-origin HMS 1&2 (80:20) rose to $473/mt cfr Vietnam, up by $28/mt from last Thursday. 



The weekly index for P&S 5ft rose to $518/mt cfr Indonesia port, up by $29/mt amid weak supply. The Davis Index for shredded increased by $49/mt to $513/mt cfr Indonesia port.

Offers for P&S 5ft were in the range of $515-$520/mt. The market was largely silent due to the Ramadan and Eid holidays, expected to end on Monday.


($1= JPY109.65, TWD27.99, VND23050, IDR14,450)



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