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

Ferrous scrap markets across Southeast Asia remained quiet this week. Prices were mixed.



Japanese ferrous scrap export prices continued to drop as uncertainty prevailed due to the COVID-19 outbreak and resulting shutdowns. The government imposed a state of emergency in Osaka, Tokyo, Fukuoka and other major provinces on April 7.

Japanese #2 HMS traded at JPY19,000-19,500/mt fob Japan, down by JPY500-1,000/mt from the prior week.



Imported ferrous scrap prices in Taiwan were supported by prices rebounding in Turkey. Local ferrous scrap suppliers refused to offer material at lower prices.  


In container markets, the weekly Davis Index for containerised US origin HMS 1&2(80:20) settled at $202/mt cfr Taiwan on Thursday, down by $4/mt. Trades for containerised HMS 1&2 (80:20) concluded at $200-203/mt cfr Taiwan early in the week. 

Offers from suppliers were in the range of $205/mt cfr Taiwan late in the week, following an upturn in Turkish bulk scrap markets. Bids, however, were at $195-200/mt cfr Taiwan.


The Davis Index for containerised shredded settled at $218/mt cfr Taiwan, unchanged from the prior week. US-origin containerised shredded was offered at $215-220/mt cfr Taiwan with no bids in the markets.


In bulk markets, Japanese HMS 1&2 (50:50) in small bulk cargoes traded at $210/mt cfr Taiwan.  


Global billet prices remained under pressure with increasing competition among steel makers in India, Russia and China to liquidate inventories. Southeast Asian buyers booked billet at $365-370/mt cfr from these suppliers, down $10/mt from the prior week.  



Vietnamese steel mills continued booking ferrous scrap cargoes according to requirement, though overall trade activities have considerably dropped amid restricted movement and social distancing announced by the government.  An Australian yard sold a bulk cargo comprising HMS 1&2 (80:20) at $237/mt cfr Vietnam to a steel mill in the southern region.Another south Vietnam mill was heard to have booked Japanese bulk cargo comprising #2 HMS at $210/mt cfr Vietnam, down by $3/mt from the prior week. 


Japanese scrap export prices remained on a downtrend, dropping another $10/mt from the prior week due to diminishing demand from overseas buyers and sluggish demand in the domestic market.  Offers for #2 HMS in small bulk cargoes were at $215-220/mt cfr South Vietnam and at $225-230/mt cfr in the northern region, with very thin trades at those prices.  Offers for HS scrap were in the range $260-265/mt cfr north Vietnam, with no takers.  


On April 7, 3000mt of HS scrap equivalent to P&S was traded at $254/mt cfr South Vietnam, down $5/mt from the prior week’s offers. 

Hong Kong-origin HMS 1&2 (50:50) in bulk traded at $225-230/mt cfr North Vietnam, but bids for the same in the South were at $210-215/mt cfr Vietnam.


The Vietnam container market remained flat with very limited trades concluded this week. The Davis Index for containerised P&S 5ft, busheling and shredded, settled at $238/mt cfr, $245/mt cfr and $233/mt cfr Vietnam. The Davis Index for containerised HMS 1&2 (80:20) settled at $215/mt cfr Vietnam, down by $1/mt from the prior week. US suppliers offered HMS 1&2 (80:20) and shredded at index prices to Vietnamese mills.



Indonesian mills remained silent due to a mismatch between offers and bids this week. Also, the spread of COVID-19 in the southeast and far east regions brought uncertainty to ferrous markets. 


Some traders turned active for bookings following increased prices in Turkish bulk markets, fearing tightening supply will push prices upward in the near term.The Davis Index for containerised P&S 5ft settled at $238/mt cfr Jakarta, unchanged from the prior week. 

US-origin P&S in 40-foot containers were offered at $245-250/mt cfr Jakarta. 


Domestic heavy melt scrap was priced at $220-225/mt del Indonesia mills, marginally up by $5/mt from the prior week. The weekly index for busheling scrap settled at $250/mt cfr Jakarta, down by $8/mt. Mills were interested to book material at $240/mt cfr but a few traders offered the same at $250-255/mt cfr Jakarta.


The Davis Index for containerised shredded settled at $235/mt cfr Jakarta, up by $1/mt from the prior week, though bids from mills were at lower levels of $220/mt cfr Jakarta. Suppliers refused to sell below $240-245/mt cfr Jakarta, said a trader. The Davis Index for containerised HMS 1&2 (80:20) settled at $220/mt cfr Jakarta, up by $1/mt from the prior week.  


Offers from the US suppliers of $220-225/mt  were rejected by buyers.  Indonesian mills traded 4sp billets at $365-370/mt cfr Southeast Asia, down by $10/mt from the prior Thursday. 



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