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

Imported ferrous scrap prices in Southeast Asian markets declined further as mills slowed purchases. Finished and semi-finished steel markets witnessed demand challenge which their pressured prices. 


Japanese ferrous scrap export prices declined this week as well. From the last week, export prices fell by a total of JPY2,500-3,000/mt till Wednesday. South Korean mills lowered bids for #2 HMS scrap to JPY21,500-22,000/mt fob Japan from JPY22,500-23,000/mt fob Japan early this week. 

A leading steelmaker Hyundai is collecting offers and would present its bids for Japanese scrap on Friday. Hyundai’s bids could set a price direction for Japanese export prices for the coming days. 



Imported scrap prices in Taiwan dropped amid thin trades. The Davis Index for containerised US-origin HMS 1&2 (80:20) fell by $1/mt to $232/mt cfr Taiwan from Wednesday and by $10/mt from the prior week. Few deals were heard at $235/mt cfr this week for US-origin HMS 1&2 (80:20). Offers from other supplier countries were around $230/mt cfr Taiwan. No major trades were heard since early this week. Demand for finished steel is still trending down in Taiwan, a seasonal phenomenon for summers, informed sources. 

South American-origin HMS 1&2 (80:20) in FEUs was sold at $220/mt cfr Taiwan. 

The weekly Davis index for containerised shredded settled at $249/mt cfr Taiwan, down by $3/mt. US-origin #1 HMS was offered at $240-241/mt cfr Taiwan compared to $230/mt cfr Taiwan levels for material from South America. The index for #1 HMS settled at $240/mt, down by $10/mt from the prior week. 

The weekly index for P&S 5 ft settled at $249/mt cfr Taichung, down by $9/mt with no major trades heard.

Suppliers were not keen to reduce prices citing a rise in import prices in Turkey. Turkish bulk HMS 1&2 (80:20) index settled at $253.42/mt cfr, up by around $3/mt from Tuesday. 

In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $245-250/mt cfr Taiwan and busheling scrap offers were at $270-275/mt cfr Taiwan. 


 In bulk markets, US-origin HMS 1&2 was offered at $265/mt cfr Vietnam, down $10/mt from the prior week, but no major trades were reported at these levels. 

In containers markets, a few bookings of #1 HMS were heard at $243/mt cfr with the weekly index for the grade settling at $243/mt cfr, down by $7/mt on Thursday. The weekly index for #1 busheling declined by $7/mt to $268/mt cfr Vietnam. Central American HMS 1&2 (90:10) traded at $245-247/mt cfr Vietnam, while offers for HMS 1&2 (80:20) from the US in FEU’s were at $235/mt cfr Vietnam on Thursday. 

The weekly Davis Index for US-origin shredded and P&S 5ft fell by $6/mt and $5/mt, with their indexes settling at $252/mt cfr and $260/mt cfr Haiphong, respectively. 

In small bulk markets, Japanese HMS 1&2 (50:50) traded at $255-260/mt cfr South Vietnam and the same grade of Hong Kong-origin at $255/mt cfr North Vietnam. Offers for #2 HMS and HS grade in small bulk were at $250/mt cfr Vietnam and $275-280/mt cfr Vietnam, respectively, both down $10/mt from the prior week.


Following the trend in other southeast Asian countries, Indonesian ferrous scrap prices fell amid sluggish demand for finished steel and weak global cues. A lack of clarity on the new regulations set for scrap imports made buyers hold their bookings.  

Few deals for containerised P&S 5ft were at $265/mt cfr Jakarta. The weekly Davis Index for P&S 5ft settled at $266/mt cfr Jakarta, down by $3/mt from the prior week. Few trades for US-origin #1 HMS 5ft in TEUs were heard at $251/mt cfr Jakarta with the index for the grade settling at $251/mt cfr, down by $4/mt.

The weekly index for US-origin HMS 1&2 (80:20) and shredded settled at $242/mt cfr, down by $2/mt and $255/mt cfr Jakarta, down by $5/mt, respectively. Traders are, however, expecting buying prices to improve next week driven by the rise in Turkish buying prices. 



In the containers market, HMS 1&2 (80:20) from the middle east and the US was offered at $225-230/mt cfr Malaysia. 


($1=JPY107.42; VND23,203.53; NTD29.45)


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