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


In Taiwan, ferrous scrap offers rose this week despite thin trades. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) was up by $1/mt on Thursday to settle at $270/mt cfr Taiwan from Wednesday. The index rose by $6/mt from the week prior as suppliers hiked offers after the Kanto tender. Taiwanese mills are avoiding high volumes of US-origin scrap and instead opting for lower-priced South American scrap. 


The uptick in Turkish scrap market has also impacted Taiwanese bulk deals. Due to high offers from Japan and the US, Taiwanese mills reduced scrap purchases. No bulk deals concluded this week. In Turkey, renewed buying was seen this week with index settling at $286.5/mt, up by $4/mt on Tuesday from Aug 20 and by $15/mt from July 27. 


In the containerised market, US-origin HMS 1&2 (80:20) deals were heard at $268-270 levels, while major mills bids at $260-265/mt. Mills preferred buying domestic scrap or delaying purchases. Offers for Australian HMS 1&2 (70:30) were at $260/mt, with no trades heard.


The weekly Davis index for containerized P&S 5ft fell by $2/mt this week to $286/mt, due to limited demand and lower bids. A deal for Venezuelan P&S 5ft was heard at $265/mt cfr on Monday, indicating a preference for lower-priced 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. No trades were heard. Deals for #1 HMS from South America concluded at $273/mt on Monday, with the index settling at the same level.


Japanese HMS 1&2 (50:50) offers to Taiwan were at $295-300.


Feng Hsin raised domestic ferrous scrap prices during the week. The Davis Index for domestic HMS 1&2 (80:20) in South and North Taiwan, Tuesday, rose by up by NT$300/mt ($10.20/mt) to settle at NT$7,400/mt ($252/mt) and NT$7,600/mt delivered mill, respectively. 


Market participants said some Taiwanese mills could raise scrap purchase prices in the next week or two, but for now, prices are not viable for steelmakers as finished steel demand in the domestic market is still sluggish.



In the containers market, the weekly index for HMS1&2 (80:20) rose by $7/mt to $271/mt cfr, and up by $11/mt from Aug 13. The weekly index for #1 busheling rose by $6/mt to $306/mt cfr on higher offers, while the index for shredded rose by $9/mt to $295/mt cfr. Deals for US-origin P&S 5ft were heard at $300-305/mt this week with the Davis Index for the grade settling at $303/mt. 


In the containerised market, ferrous scrap trades this week were slow amid sluggish domestic steel demand due to a rise in COVID-19 infections. 


Hong Kong HMS 1&2 (50:50) was offered at $280/mt cfr southern Vietnam. Containerized HMS1&2 (80:20) from the USWC was offered at $270/mt cfr Vietnam and a deal was heard at $260/mt this week.


In the bulk market, US-origin HMS 1&2 (80:20) deals were heard at $301/mt cfr in the earlier part of the week. Offers for Japanese HS and shindachi were at $320/mt, with no trades heard. #2HMS offers this week were at $287-293/mt cfr South Vietnam, while North Vietnam offers were at $297-300/mt.


Shortage of domestic scrap and expected high demand for finished steel in September are expected to drive scrap bookings, said mill owners. For August, the demand scenario looks bleak on the back of increasing COVID-19 infection. 



Indonesian mills were cautious of not buying ferrous scrap at high prices, while offers kept rising this week on global cue. The weekly Davis Index for HMS 1&2(80:20) fell by $10/mt to $278/mt cfr Jakarta due to lowering bids at $265-270/mt. Market participants felt that rise in offer prices driven by Kanto tender and Turkish buying is not proportional to finished steel demand in Indonesia. 


Steel mills from Indonesia were offering steel billets at $440/mt cfr Philippines amid high raw material cost. Mills are expecting demand to improve next week, but for now, are focusing on lower-priced scrap. 


The Davis Index for shredded fell by $5/mt to $290/mt this week due to low bids. No trades were heard for the grade. The index for #1 HMS 5ft fell by $3/mt to $291/mt cfr.



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