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

Mills in Taiwan, Vietnam, and South Korea limit containerised scrap purchase amid holidays and annual maintenance. Imported ferrous scrap offers to Asian destinations rose amid tight supply and rising demand from Turkey and China. 


US and Japanese exporters refused to reduce offer prices in anticipation of a rise in demand from Asian countries after Lunar New Year holidays. With iron ore 62 Fe price, Thursday, rising by $13/mt to $165/mt cfr China from the prior week, offers for Japanese HS rose to $450-460/mt, up by $10/mt. Few deals for trial quantities of P&S 5ft 3,000mt heard this week at $465-470/mt cfr from Singapore and South Korea.



The Davis Index for containerized US-origin HMS 1&2 (80:20), Thursday, settled flat at $368/mt cfr Taiwan from the prior day as US-based exporters kept offers firm at $370-375/mt in anticipation of a rise in finished steel demand after holidays. The index rose by $1/mt from the prior week (Feb 4). 


Taiwanese mills are expected to negotiate for US and Japanese scrap post holidays. Buyers said mills have lowered booking volumes and have opted to wait for price direction.


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by by $8/mt, $4/mt, $6/mt and $3/mt $396/mt cfr, $378/mt cfr, $385/mt cfr and $404/mt cfr, respectively. Mills have turned cautious amid a rise in offers for Japanese ferrous scrap after Kanto Tender and a $5-6/mt rise in Turkish purchase price on Wednesday from Tuesday.


In bulk, no deals were heard this week.



Like Taiwan, Vietnamese mills stayed away from any purchase this week due to holidays and volatility in global scrap prices. Due to a shortage of containers, Vietnamese mills preferred negotiating for bulk scrap from Japan and Russia before holidays. Higher offers have forced mills to wait till prices stabilise, said traders indicating that mills could resume purchases post-holidays in anticipation of a rise in finished steel demand.


In the containers market, the weekly index for US-origin HMS 1&2 (80:20) Thursday settled at $380/mt cfr Vietnam up $7/mt from the prior week. While Vietnamese mills hold bids at $375-380/mt. Market participants expect prices to rise as exporters refused to budge.


The weekly index for P&S 5ft and shredded rose by $3/mt and $4/mt, to $406/mt cfr and $395/mt cfr, respectively, on Thursday, amid rising offers.


In bulk, Japanese #2 HMS offers heard at JPY40,000/mt ($382/mt) fob on Wednesday from JPY35,000/mt in the prior week. 



Indonesian mills stayed away from imported scrap market due to price volatility. Many yards have registration expiry in March according to Indonesia’s import policy, thereby limiting offers. Traders are negotiating deals from Hong Kong, Australia, Singapore, and the US but are wary of rising prices.


Buyers expect ferrous scrap prices to rise further post Lunar New Year. The weekly Davis Index for HMS 1&2 (80:20) rose by $8/mt to $381/mt cfr Jakarta. Offers rose by $15-20/mt to $385-390/mt cfr Jakarta on Thursday from the prior week. Mills preferred ferrous scrap from Malaysia and Hong Kong for immediate requirements and to avoid delays in shipment.


The indexes for P&S 5ft and shredded rose by $10/mt and $7/mt at $410/mt cfr and $400/mt cfr Jakarta, respectively. Offers for UK-origin P&S 5ft heard at $415-420/mt cfr Jakarta, up by $5/mt from the prior week. 


The weekly Davis Index for #1 busheling rose by $6/mt at $416/mt cfr. Offers for Malaysian-origin busheling heard at $430/mt cfr on Thursday, up by $5/mt from the prior week. Limited deals were heard for the grade as most mills preferred to wait amid subdued finished steel demand.



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