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


Ferrous scrap offers rose in Taiwan as mills booked limited volumes amid sluggish demand for finished steel. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) Thursday remained flat at $270/mt cfr Taiwan from the prior week. Market participants informed that while offers are rising Taiwanese mills are limiting volumes as they seek low-priced scrap from South American yards.


Turkish scrap market was active with increased buying this week. The index settled at $295.5/mt, up approx $6/mt on Tuesday from Aug 27 and up $15/mt from Aug 4. Due to high offers from Japan and the US, Taiwanese mills have reduced buying and not concluded any bulk deals this week. 


In containerised scrap, US-origin HMS 1&2 (80:20) deals were heard at $268-270/mt cfr Taiwan levels. Major mills bids lower at $260-265/mt. Steel mills preferred buying domestic scrap or delaying purchases. Offers for Australian-origin HMS 1&2 (70:30) were at $260/mt, with no trades heard. The weekly Davis index for containerized P&S 5ft, shredded and #1HMS were flat at $286/mt cfr, $283/mt cfr and $275/mt cfr due to limited demand and lower bids. 


A deal for Venezuelan HMS 1&2 (80:20) was heard at $265/mt cfr on Monday, indicating a preference for lower-priced origin scrap.

The index for weekly shredded settled at $283/mt cfr Taiwan, up by $3/mt from the week prior and $8/mt from Aug 13, on higher offers but no trades. Deals for #1 HMS from South America were heard at $270/mt on Monday, with the index settling at the same. 


Feng Hsin’s base offers for rebar and billets were flat at NT$14,500/mt ($494/mt) and NT$13,000/mt ex-works, respectively. Market participants indicated that a majority of Taiwanese mills could raise prices in the next week or two.



In the containers market, the weekly index for HMS1&2 (80:20) rose by $5/mt to $283/mt cfr Vietnam from the prior week and up by $12/mt from August 20. Limited trades were heard as buyers sought low-priced bulk cargoes.


The weekly index for #1 busheling and #1HMS rose by $4/mt to $310/mt cfr and $285/mt cfr, respectively, on rising offers, while the index for shredded was flat at $295/mt cfr on Thursday. Limited deals were heard for US-origin #1HMS at $285/mt this week.

Vietnamese mills booked fewer containerised scrap trades this week due to weak domestic demand for finished steel amid the rise in COVID-19 infections.


In the bulk market, importers are still buying cautiously as international scrap prices maintained an uptrend. Limited bulk deals concluded in the week. More Vietnamese mills are exploring the US market for lower-priced bulk. Offers for US-origin HMS 1&2 (80:20) were at $310-315/mt on Thursday. Shortage of domestic scrap and an expected recovery demand in finished steel demand could drive scrap bookings in September, said mill owners. 



Indonesian mills continued to shy away from high-priced offers. The weekly Davis Index for HMS 1&2(80:20) increased by $8/mt to $286/mt cfr Jakarta as offers rose to $290/mt. Market participants refused higher offers amid weak finished steel demand in Indonesia. Importers, however, anticipate increased scrap buying on hopes of better steel demand by mid-September or October. 


Limited deals for P&S 5ft and #1 busheling were heard at $305-308/mt cfr and $320/mt cfr, respectively with the weekly index settling at $307/mt and $320/mt, respectively, on Thursday. Shredded index settled up by $8/mt to $298/mt cfr on higher offers while no trades were heard for the same.


Many traders and exporters are still unable to register with authorities to supply ferrous scrap into Indonesia, this could create a shortage of scrap in the country.



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