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

Imported scrap prices in East and Southeast Asian markets rose from the prior week with US-based suppliers raising offer prices despite limited demand. Asian buyers remain wary of buying at higher prices.



The Davis Index for containerized US-origin HMS 1&2 (80:20) settled up by $1/mt at $292/mt cfr Taiwan from the prior day, while it rose by $5/mt from the prior week (Nov 5). A few deals were heard at $290-293/mt cfr on Wednesday and $295/mt on Thursday. Many bids were still at $288-290/mt cfr. 


Finished steel prices remained flat this week and are likely to rise to offset increased input costs. Domestic ferrous scrap price is also likely to move up amid higher imported offers.


US yards offered HMS 1&2 (80:20) in FEUs at $297/mt cfr. Prices are expected to rise with increased buying by Turkish importers. The Davis Index for US-origin HMS 1&2 (80:20) in Turkey rose by $10/mt on Wednesday from Oct 5. While demand is limited, rising offers are pushing ferrous scrap prices up. 


Steelmaker Feng Hsin focused on purchasing domestic and South American scrap at lower prices to avoid high imported offers.


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $5/mt, $5/mt,$7/mt, and $4/mt to $313/mt cfr, $298/mt cfr, $308/mt cfr, and $318/mt cfr, respectively. 


In the bulk market, offers for Japanese HMS 1&2 (50:50) were at $330-335/mt cfr, up by $15-20/mt. Offers rose amid limited buying. A few deals are being negotiated, heard Davis. 



In the containers market, the weekly index for US-origin HMS 1&2 (80:20) settled at $297/mt cfr Vietnam on Thursday, up by $3/mt. US-based suppliers offered the grade at $300/mt cfr, while Australian yard offered at $310-315/mt cfr. Bids by other Asian countries were more lucrative and thus, sellers largely stayed away from the Vietnamese market. 


Vietnamese mills, on the other hand, negotiated for Japan and US-origin material in bulk while containerized trades took a backseat. Japanese ferrous scrap export prices also started rising this week post the Kanto bids, which again limited trades.  


The weekly index for P&S 5ft and shredded rose by $4/mt and $3/mt to $319/mt cfr and $315/mt cfr, respectively, on Thursday. Deals were heard for oversized P&S 5ft from Hong kong at $316/mt cfr Vietnam on Tuesday. Vietnamese mills are inquiring for higher grades scrap, said traders. Offers for P&S 5ft in TEU were at $320-325/mt with no buying at these levels. 


In the containers market, prices for #1 busheling rose by $3/mt at $324/mt cfr from a week ago, and offers of $325-330/mt cfr in TEU were unacceptable for buyers. 

In the bulk market, deals were heard for Japanese #2 HMS at $327/mt cfr on Wednesday and Hong Kong-origin HMS 1&2 (50:50) sold at $310/mt cfr on Tuesday.


Offers for Japanese HS were at $350/mt cfr, while bids were at $340/mt cfr.



Indonesian mills booked cautiously amid high US-origin offers. Market participants are expecting scrap prices to rise further next week. The difference between offers and bids in Indonesia is currently around $10/mt cfr. The weekly Davis Index for HMS 1&2 (80:20) rose by $2/mt to $306/mt cfr Jakarta. A few offers were at $310-315/mt cfr Jakarta on Thursday, with bids remaining at $300/mt cfr.


The indexes for P&S 5ft and #1 HMS rose by $3/mt and $4/mt to $325/mt cfr and $311/mt cfr Jakarta, respectively. No deals heard this week due to a widening gap between offers and bids and mills opted out of the market subsequently. 


The weekly Davis Index for #1 busheling settled flat at $335/mt cfr as deals were heard at $330/mt on Monday, while deal price rose to $335/mt cfr on Thursday. 


The weekly Davis Index for shredded rose by $4/mt cfr at $319/mt cfr. Mills enquired shredded amid rising demand for billet from China. Indonesia sold 30,000 mt steel billet to China this week at $460/mt cfr.

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