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


The daily Davis Index for US-origin containerized HMS 1&2 (80:20), Thursday, fell by $6/mt to $405/mt cfr Taiwan with bids dropping to $400/mt cfr amid sluggish demand. US-based exporters reduced offers by $20-25/mt from the prior week to $410/mt cfr due to better supply and in anticipation of a further drop in bids. The index fell by $24/mt from the prior week (March 11).


Few Taiwanese mills bid for Japanese HMS 1&2 (50:50) at $400/mt cfr, down by $35/mt, while offers were at $420/mt cfr from the prior week on falling Japanese domestic scrap prices post lower-than-expected bids at Kansai tender. Traders said most mills are yet to bid and are cautious of falling scrap prices in the international markets. Importers are also tracking South Korean and Chinese mills purchase before negotiating.


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling fell by $24/mt, $25/mt, $25/mt and $21/mt $431/mt cfr, $410/mt cfr, $420/mt cfr, and $440/mt cfr, respectively from March 11. Mills have turned cautious amid slow finished steel demand and are focusing more on bulk scrap over containerised due to shortage of containers and vessel delays.



Vietnamese mills lowered bids on global cues and still prefer to buy bulk scrap due to a short supply of empty containers. Post Kansai tender, importers are cautious and waiting for prices to fall further. Mills are tracking Turkish and Chinese purchases, with the Turkish index for HMS 1&2 (80:20) falling by $18.75/mt to $428.25/mt cfr on Wednesday from the prior week (March 11).


In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled down by $24/mt at $410/mt cfr Vietnam from the prior week. Vietnamese mills bids were at $405/mt, while offers fell by $20-25/mt at $415/mt from the week prior.


The weekly index for P&S 5ft and shredded, Thursday, fell by $22/mt and $23/mt, to $438/mt cfr and $426/mt cfr, respectively amid low bids from most importing destinations.


In bulk, bids for Japanese #2 HMS heard at $420/mt cfr, while offers at $430/mt cfr. One USWC bulk deals heard at $460/mt cfr Vietnam with bids falling further to $440-450/mt cfr this week.



Indonesian mills limited bookings amid falling global ferrous scrap prices. Mills are also cautious of new bookings as many exporters are still processing export registration due to delays. Traders said that container shortages and reduction in buying prices from Turkey and China has kept sentiments bearish. Mills preferred Hong Kong oversized P&S with bids at $430-435/mt cfr this week. Chinese bids for Japanese HS heard at $460-465/mt cfr this week.


The weekly Davis Index for HMS 1&2 (80:20) fell by $20/mt to $415/mt cfr Jakarta from the week prior. No deals were heard with bids falling in anticipation of a drop in scrap prices.


The indexes for P&S 5ft and shredded fell by $22/mt and $26/mt to $438/mt cfr and $430/mt cfr Jakarta, respectively. Offers for US origin P&S 5ft fell by $25/mt to $440-445/mt cfr, while bids were at $430-435/mt cfr. Many traders indicated that mills are cautious of falling prices and waiting for prices to hit bottom.


The weekly Davis Index for #1 busheling fell by $20/mt to $445/mt cfr from the prior week with mills preferring domestic scrap and closely watching busheling purchase by other Asian countries. Bids for domestic busheling heard at $444/mt delivered Jakarta mill on Thursday.



Tokyo Steel reduced ferrous scrap price for the second time this week. Effective March 19, the steelmaker reduced ferrous scrap purchase prices by JPY500/mt ($4.6/mt) delivered Tahara and Utsunomiya plant, while others remained flat. Tokyo Steel’s bids were at JPY41,500/mt ($380.6/mt) delivered Tahara, JPY40,500/mt delivered Okayama, JPY41,000/mt delivered Kyushu, JPY41,000/mt delivered Utsunomiya and JPY39,500/mt delivered Takamatsu, on Thursday.


Market participants expect prices to fall as South Korean, Vietnamese and Taiwanese mills reduce bids. South Korean mills were heard to have bought #2 HMS at JPY41,000/mt fob this week, while deals to Vietnam heard last week at $440-450/mt cfr.


($1= JPY109)

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