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


On Tuesday, Japanese steelmaker Tokyo Steel announced a price hike for a second successive day. The steelmaker raised purchase prices after average bids in the Kanto tender jumped by JPY5,450/mt ($50/mt). Rising domestic steel demand also supported prices. 

The mill raised ferrous scrap purchase prices by JPY2,000/mt ($18.3/mt) for all grades delivered to its Utsunomiya factory in the Kanto region and by JPY3,000/mt($27.57/mt) for all the grades in Tahara, Okayama, Kyushu, and Takamatsu factories. 


Revised bids for #2 HMS are at JPY49,000/mt at Tahara, JPY48,000/mt at Okayama, JPY47,500/mt at Kyushu, JPY46,000/mt at Utsunomiya, and JPY46,500/mt at Takamatsu, on a delivered plant basis. Supply in the domestic market is tight. Logistic challenges and demand for high-grade scrap in East and South-East Asia also aided prices. 


South Korea

The weekly Davis Index for domestic Heavy A rose, Tuesday, by KRW10,000/mt to KRW475,000/mt delivered Incheon. Major steelmakers bought domestic heavy A scrap at KRW475,000-485,000/mt ($425-433/mt) delivered to Incheon and Pohang mills. 

In the Pohang region, prices for domestic scrap rose by KRW10000-15000/mt ($13.40) delivered. The weekly Davis Index for domestic Light A grade settled at KRW455,000/mt delivered Pohang, up KRW10,000/mt. While the weekly Davis index for domestic Heavy A, Tuesday, increased by KRW15,000/mt to KRW485,000 delivered Pohang.


South Korean mills opted for domestic scrap over imported purchases. But bids for Japanese scrap by major producers could be revised this week, as they lag by over JPY5,000-6,000/mt than current expectations.  


Widening profit margins for electric furnace-based flat steelmakers who are targeting above $1,000/mt levels for HRC exports, could support mills to procure scrap at higher prices. 



The weekly Davis Indexes for domestic HMS 1&2 (80:20) rose by TWD300/mt to TWD12,300/mt and TWD12,100/mt delivered Northern and Southern mill, respectively. Domestic P&S was offered at TWD13,500-13,800/mt delivered mill. 

In seaborne markets, the daily Davis Index US-origin containerized HMS 1&2 (80:20) increased by $7/mt to $447/mt cfr. Offers from a few yards on Tuesday rose to $460-470/mt cfr Taiwan, after trades reported at $445-450/mt cfr Taiwan. 

Taiwanese mills believe billet prices could rise in the China domestic market. Offers for Southeast and East Asian billet were at $750/mt cfr China. 



The weekly Davis Index for the HMS (80:20) was at CNY3750/mt delivered mill, up CNY225/mt. Chinese ferrous scrap consumption has increased by 25pc from the prior month, a local media report claimed. 


In China’s domestic market, billet prices rose by CNY20/mt to CNY5,670/mt ($884/mt) ex-works Tangshan. Billet prices rose over CNY600-700/mt ($94-109/mt) since the country resumed trading after the labour day holidays.  

Shagang Steel announced a hike in steel prices for mid-May shipments by CNY500-600/mt ($77-93/mt). Iron ore spot prices continued to rise amid economic optimism despite production curbs. Trade tensions between Australia and China pushed prices up despite limited actual demand. For 62pc ferrous content spot iron ore prices were jumped to $230/mt cfr China up over $40/mt in a week.



The weekly Davis Index for HMS 1&2 (80:20) in Vietnam was up by VND500,000/mt to VND10,750,000/mt ($466/mt) delivered Southern mill. After Baosteel’s revising HRC offers above $1,000/mt ex works for June shipments, Vietnamese HRC and long steel producers including Hoa Phat steel and Formosa Steel could also raise prices in the coming days. 

Vietnamese mills who were largely away from imported ferrous scrap trades last week could resume bookings by paying $25-30/mt from prior deals. In the container market, offers for FEUs of HMS 1&2 (80:20) surged by over $30-35/mt to $475-480/mt cfr Vietnam. 


The weekly Davis index for domestic HMS 1&2 (80:20) rose by THB250/mt to THB14,150/mt delivered Rayong mill. Offers for domestic P&S 5ft rose by THB150/mt to THB15892.61/mt ($511/mt) on Tuesday. 

Steel mills continued to offer billets in the export market. But deals were limited since other supplier countries offered billets at lower prices.  



The weekly Davis Index for HMS 1&2 (80:20) rose by MYR50/mt to MYR1,850/mt delivered western mill and by MYR55/mt to MYR1880/mt delivered eastern mill. Malaysian furnaces have decided to wait for clarity on the global trends after a sharp rise in iron ore prices in China. 


($1= JPY108.5; TWD27.9; CNY6.42; THB31.10; MYR4.12; VND23062; KRW1,119)


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