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

Domestic ferrous scrap prices in most Asian markets dropped further this week amid limited demand, except in China. Ferrous scrap prices rose in China buoyed by a rise in finished steel and billet prices driven by the government’s economic stimulus. Finished steel demand in Asia weakened while scrap inventories were in line with current requirements. 



Japan’s domestic ferrous scrap prices continued to trend down. Tokyo Steel reduced its domestic ferrous scrap purchase prices by JPY500/mt ($5/mt) at three of its sites, Okayama, Kyushu and Takamatsu steel centre, effective July 8. Bids for ferrous scrap delivered to Utsunomiya and Tahara, however, remain unchanged. 


Purchase prices for #2 HMS are at JPY21,500/mt ($200/mt) delivered Utsunomiya works in Kanto region, indicating Japanese scrap prices might have reached a short term bottom. Bids for #2 HMS and busheling are at JPY23,500/mt and JPY25,000/mt delivered Kyushu and JPY23,000/mt and JPY24,000/mt delivered Okayama plant, respectively. 


Market participants await the commencement of Kanto Tetsugen tender scheduled this week to gain more clarity on the price direction.


South Korea 

South Korean domestic ferrous scrap prices dropped further amid high scrap inventories at the mills. Dongkuk, SeAH, YK, Daehan and Hyundai Steel lowered domestic scrap purchase prices by KRW10,000-15,000/mt del plant for the third successive week.


The Davis Index for domestic Heavy A Tuesday fell by KRW7,500/mt to settle at KRW300,000/mt ($255.8/mt) del Incheon, while the index in Pohang settled at KRW280,000/mt delivered, down by KRW10,000/mt from the prior Tuesday. 


The weekly Davis Index for domestic Light A settled at KRW255,000/mt delivered Pohang plant, down by KRW10,000/mt. 


Bids for Japanese scrap imports in small bulk dropped by JPY500-1000/mt to JPY21,500-22,000/mt fob Japan. 



Domestic ferrous scrap prices in Taiwan continued to drop this week. Domestic scrap fell by NTD200-300/mt amid prolonged weakness in demand.  

The weekly Davis Index for domestic HMS 1&2 (80:20) in South Taiwan Tuesday settled at NTD6,650/mt ($226/mt) del plant from the prior week. The index for HMS 1&2 (80:20) in North Taiwan settled at NTD6,900/mt del plant, down NTD250/mt. 


Feng Hsin Steel lowered domestic HMS 1&2 (80:20) prices to NTD6,700/mt delivered Taichung plant from the prior Tuesday. The steelmaker’s base offers for rebar and billet dropped at NTD13,800-14,000/mt and NTD12,300-12,500/mt ex-plant. A few mills offered discounts on listed prices to boost demand. 


In seaborne trades, US-origin containerised HMS 1&2 (80:20) traded at $228-230/mt cfr Taiwan, down $5/mt last week. Bids for South America and Central American HMS 1&2 (80:20) were heard at $220-225/mt cfr Taiwan on Tuesday, down $10/mt from the prior week.  


The Davis Index for HMS 1&2 (80:20) settled at VND5,850,000/mt ($252/mt) delivered South Vietnam inclusive of taxes, down by VND50,000/mt from the prior week. 



In China, Shagang Steel held bids for domestic #2 HMS (6-10mm thickness) on Tuesday at CNY2,630/mt, up by CNY30/mt del Jiangsu plant inclusive of the 13pc VAT. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,650/mt ($377.3/mt) inclusive of 13pc vat delivered to mill in eastern China, up by CNY50/mt. The government has announced an economic stimulus package to drive steel demand amid heavy rains and resulting floods in the northern region. In the domestic market, prices for billet rose by CNY30-50/mt from Friday last week to CNY3,330-3,350/mt ex-Tangshan mill on Tuesday.  



The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7,750/mt ($248/mt) delivered Rayong inclusive of taxes. Southeast Asian billet prices increased to around $405-410/mt cfr Southeast Asia amid limited availability of ferrous scrap in the domestic market. 



The weekly Davis Indexes for domestic HMS 1&2 (80:20) settled at MYR930/mt ($221/mt) delivered western mills, down by MYR15/mt and at MYR960/mt delivered eastern mills, down by MYR15/mt inclusive of taxes. Domestic ferrous scrap prices dropped following the movement in imported scrap prices. In seaborne markets, imported HMS 1&2 (80:20) scrap traded at $220-230/mt cfr Malaysia from South and Central America depending on the quality of the material.


($1= JPY107.73; NTD23,193; CNY7.02; THB31.23; MYR4.27; VND23,192.8; KRW1,195.44)

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