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

Domestic ferrous scrap prices in most Southeast and East Asian markets moved up this week driven by a rise in Japanese export prices and bullish global steel markets.



Domestic ferrous scrap prices strengthened following a rise in export prices. Most EAF makers in the Kanto region have raised their bids by JPY500-1,000/mt ($4.78-9.49/mt) from the prior week as suppliers refused trades at previous price levels.

Tokyo Steel increased domestic scrap purchase prices at Utsunomiya plant by JPY500/mt effective July 28, however, bids at its four other plants were kept unchanged. The steelmaker has started maintenance activities amid low steel demand. 

Tokyo’s purchase prices for #2 HMS are at JPY22,500/mt ($213.6/mt) delivered Utsunomiya mill. Bids for #2 HMS and busheling are at JPY23,500/mt and JPY25,000/mt delivered Kyushu, respectively. At Okayama mill, bids for #2 HMS and busheling are JPY23,000/mt and JPY24,000/mt delivered mill, respectively. 


South Korea 

South Korean domestic scrap prices started rising this week following global cues. Mills raised their domestic scrap purchase prices by KRW5,000/mt ($4.17/mt) after four successive weekly cuts. 

 The Davis Index for domestic Heavy A settled unchanged at KRW285,000/mt ($237.7/mt) del Incheon, while the index in Pohang settled at KRW275,000/mt delivered mill, up by KRW5,000/mt from the prior Tuesday. 

The weekly Davis Index for domestic Light A settled at KRW245,000/mt delivered Pohang mill, up by KRW5,000/mt. Trades for the grade were reported in the range of KRW245,000-250,000/mt delivered mill, depending upon the delivery time.  

Hyundai Steel booked around 11,000mt of Russian A3 scrap at $254/mt cfr South Korea. Offers for Japanese #2 HMS were at JPY24,500-25,500/mt fob Tokyo bay, up by JPY1000/mt from the prior week.



A rise in rebar and billet prices gave domestic ferrous scrap a lift in some parts of the country. 

The Davis Index for domestic HMS 1&2 (80:20) in South Taiwan, Tuesday, settled at TWD6,850/mt ($233.9/mt) del mill, unchanged from a week ago. The index for HMS 1&2 (80:20) in North Taiwan settled at TWD7,050/mt delivered mill, up by TWD200/mt. Yards raised their expectations looking at a $10-15/mt increase in offers of imported ferrous scrap in the last two weeks.

Feng Hsin Steel’s base price for domestic HMS 1&2 (80:20) is at TWD7,000/mt delivered Taichung mill. The steelmaker’s base offers for rebar and billet increased by TWD200/mt to TWD14,000/mt and TWD12,500/mt ex-works, respectively. Some other mills offered discounts on listed prices to boost trades.

 In seaborne markets, US and Australian-origin containerized HMS 1&2 (80:20) traded at $243-245/mt cfr Taiwan, up from $239-240/mt cfr Taiwan last week. Japanese small bulk cargoes of HMS 1&2 (50:50) were offered $260-265/mt cfr Taiwan, while shredded traded at $275/mt cfr Taiwan.  


The Davis Index for containerized US-origin HMS 1&2 (80:20) was unchanged at $245/mt cfr Taiwan from a week ago. Buyers and sellers could not arrive at a consensus with a gap of $10/mt between bids and offers. 



The Davis Index for HMS 1&2 (80:20) settled at VND6,000,000/mt ($259.6/mt) delivered South Vietnam, inclusive of taxes, up by VND150,000/mt from the prior week. Vietnamese HRC prices remained flat after rising last month as major steelmakers including Hoa Phat and Formosa Steel await domestic demand to pick up. 



In China, Shagang Steel reduced bids for domestic #2 HMS (6-10mm thickness) by CNY25/mt to CNY2,725/mt del Jiangsu mill, inclusive of 13pc VAT. The weekly Davis Index for the grade settled at CNY2,725/mt del Jiangsu mill, down by CNY25/mt. Shagang Steel held rebar prices unchanged from a week ago for mid-July shipments. 

Prices for billets in the domestic market declined by CNY20-30/mt after at CNY3,400/mt ($485/mt) ex-Tangshan mill on Tuesday.



The weekly Davis Index for domestic HMS 1&2 (80:20) inched up by THB200/mt to settle at THB7,950/mt ($252/mt) delivered Rayong mill, inclusive of taxes. Steelmakers started procuring scrap for August shipments expecting demand to rise in September. US-origin containerized HMS 1&2 (80:20) scrap traded at $227/mt cfr Laem Chabang on Friday. 



Prices for domestic HMS 1&2 (80:20) rose amid a rise in imported scrap and iron ore prices. The indexes for the grade settled at MYR965/mt ($227/mt), up by MYR15/mt delivered western mills and at MYR990/mt, up by MYR20/mt delivered eastern mills, inclusive of taxes from the prior week.


($1= JPY105.29; TWD29.29; CNY7; THB31.53; MYR4.25; VND23,113; KRW1,199)


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