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

Imported ferrous scrap prices rose in the week fuelled by increased freight rates, despite a decline in finished steel demand. 

Steel inventories with Southeast Asian mills remained high impacting scrap demand. 

 

Taiwan

High landed cost into Taiwan pushed imported ferrous scrap prices upwards this week too. Mills who had refilled inventories last week, slowed down bookings this week. Limited trades were reported. 

Mills preferred Japanese-origin HMS 1&2 (80:20) cargoes over US west coast containers. Offers from the US sellers were limited. 

The weekly Davis Index for containerised US-origin HMS 1&2(80:20) settled at $246/mt cfr Taiwan on Thursday, up by $8/mt. 

Containerised HMS 1&2 (80:20) traded at $240-243/mt cfr Taiwan early in the week. Prices rose to $245-250/mt cfr Taiwan on Wednesday and Thursday. The Davis Index for containerised shredded settled at $258/mt cfr Taiwan, up by $8/mt. 

On Thursday, mills were reluctant to accept present price levels and lowered their bids by $5/mt to $250-252/mt cfr Taiwan.

Japanese H1: H2 in small bulk cargoes traded $255-260/mt cfr Taiwan, up by $5/mt. 

Taiwan will have a long weekend holiday on occasion of National Peace Day on Feb 28.  

 

Vietnam

Vietnamese imported scrap prices rose this week, but mills were uncertain about prices holding up due to the impact of Covid-19 hampering finished steel trades. The weekly index for containerised HMS 1&2 (80:20) rose to $253/mt cfr Vietnam, up by $8/mt. 

US origin West coast ferrous scrap suppliers traded containerised HMS 1&2 (80:20) at $250-255/mt cfr Vietnam. US west coast suppliers offered HMS 1&2 (80:20) in bulk cargoes at $275-280/mt cfr Vietnam and shredded at $295-300/mt cfr Vietnam. There were no takers at those levels.

Mills in northern Vietnam booked Japanese #2 HMS at $260/mt cfr North Vietnam. Japanese yards offered cargoes for #2 HMS and HMS 1&2 (50:50) at $265/mt cfr south Vietnam, with no takers at those prices. 

The weekly Davis Index for US origin P&S 5ft settled at $272/mt cfr Vietnam, up by $4/mt.

 

Japan

Scrap grade #2 HMS traded at JPY24,000/mt fob Japan up from JPY23,000/mt fob Tokyo levels traded early this week.

In the domestic market, Tokyo Steel lowered its ferrous scrap purchase prices by JPY500/mt at its Kyushu plant, effective Feb 28. A few mills in the Kyushu region have cut production impacting ferrous scrap demand. at present is witnessing slow demand for finished steel. Fresh bids for #2 HMS at Kyushu plant will be at JPY19,500/mt. 

For Tokyo Steel’s other plants, bids were unchanged since Feb 13 at JPY19,000/mt del Okayama, JPY18,000/mt Takamatsu, JPY20,500/mt del Tahara plant and JPY20,000/mt del Utsunomiya plant in Kanto region. 

Participants are awaiting Kanto’s monthly scrap export tender for a price direction in the near term.

 

Indonesia

Indonesian domestic steel markets were silent this week. 

The Davis Index for containerised P&S 5ft settled at $304/mt cfr Jakarta, up by $10/mt from the prior week. 

The weekly index for Busheling settled at $314/mt cfr Jakarta, up by $10/mt.

Not many sellers were interested in Indonesia as ferrous scrap sold in India and Pakistan was priced higher by $10-15/mt than bids in Indonesia. 

The Davis Index for containerised shredded settled at $298/mt cfr Jakarta, up by $9/mt from the prior week.

The index for containerised HMS 1&2 (80:20) settled at $265/mt cfr Jakarta, up by$6/mt from the prior week. 

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