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, most Asian buyers have turned cautious.



The Davis Index for containerized US-origin HMS 1&2 (80:20 settled flat at $287/mt cfr Taiwan from the prior day, while it rose by $11/mt from the prior week (Oct 28). A few deals were heard on Thursday at $285-288/mt cfr, while offers rose to $290/mt cfr. 


Finished steel prices rose for the third consecutive time in three weeks and are likely to rise further to offset increased input costs. 

Offers for US-origin HMS 1&2 (80:20) in FEUs were at $290-293/mt cfr, and 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 16. While demand is limited, rising offers are pushing ferrous scrap prices up. To offset rising imported scrap prices, Feng Hsin raised domestic rebar and scrap prices byTWD300/mt ($10.5/mt) on Monday. 


Domestic HMS 1&2 (80:20) in South and North Taiwan were up by TWD300/mt ($10.5/mt) to TWD7,900/mt ($265/mt) and TWD81,100/mt delivered mill, respectively, on Tuesday. Offers increased on the back of firm global scrap prices and domestic ferrous scrap shortage. Scrap prices have room to rise in Taiwan as domestic scrap is offered at $20/mt lower than imported, said traders.


The weekly Davis Indexes for containerized P&S 5ft, #1 HMS, shredded and #1 busheling rose by $15/mt, $9/mt,$13/mt, and $15/mt to $308/mt cfr, $293/mt cfr, $301/mt cfr, and $314/mt cfr, respectively. 


In the bulk market, offers for Japanese HMS 1&2 (50:50) were at $305-307/mt cfr. 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 $294/mt cfr Vietnam on Thursday, up by $1/mt. Offers for the grade from the US were at $295-305/mt cfr, while the asking price for Australian material was at $305/mt cfr. Bids by other Asian countries were more lucrative and thus, sellers largely stayed away from the Vietnam market. 

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


The weekly index for P&S 5ft and shredded rose by $4/mt to $315/mt cfr and $312/mt cfr, respectively, on Thursday. As per traders, Vietnamese mills are inquiring for higher grades scrap. Offers for P&S 5ft in FEU were at $320/mt with no buyers at these levels. Offers for US-origin HMS 1&2 (80:20) were at $295-300/mt, while due to rising offers, buyers stayed away.


In the containers market, prices for #1 busheling rose by $3/mt at $321/mt cfr from a week ago, and offers of $325/mt cfr in TEU were unacceptable for buyers. 


In the bulk market, Japanese suppliers offered HS at $340/mt cfr and shredded at $330/mt cfr with no deals heard this week. Offers for Japanese #2 HMS were at JPY28,500-29,000/mt fob on Tuesday and are expected to rise amid a rise in Japanese domestic scrap prices.



Indonesian mills were unable to book material this week 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 $11/mt to $304/mt cfr Jakarta. A few offers were at $305-310/mt cfr Jakarta on Thursday, with bids at $300/mt cfr.


The indexes for P&S 5ft and #1 HMS rose by $6/mt and $7/mt to $322/mt cfr and $307/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, shredded scrap rose by $7/mt, and $2/mt to $335/mt cfr and $315/mt cfr Jakarta, respectively. Offers for #1 busheling from Malaysia and Singapore were at $350/mt cfr, while bids were at $335/mt cfr. Traders expect Indonesian mills to raise bids next week.


Billet imports into the country could reduce with the extension of the scrap registration deadline. Traders are offering billets at $460-465/mt cfr SE Asia made in blast furnaces, with no deals reported. 



Tokyo Steel raised ferrous scrap prices by JPY1,000/mt ($9.6/mt) for all grades of ferrous scrap this week, except at Utsunomiya plant. On Thursday, the steelmaker hiked prices by JPY500/mt for a second time in a week, earlier it has raised prices on Nov 3. Offers for #2 HMS were at JPY28,000/mt ($269/mt) delivered Tahara, Kyushu and Okayama plant.


The daily Davis Index for domestic HS settled up by JPY500/mt to JPY30,000/mt delivered Okayama and Kyushu plant, JPY30,500/mt delivered Tahara plant and JPY29,000/mt delivered Takamatsu plant. The daily index for the grade settled flat at JPY27,500/mt delivered Utsunomiya and the same trend was followed by other scrap grades.


Export offers are expected to rise further on rising domestic demand and global cues.


($1=TWD28.5, JPY104)

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