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

Asian domestic ferrous scrap prices remained mixed for the second week. Taiwanese domestic scrap yards raised offers following the rise in global ferrous scrap prices. In the global market, Turkish bulk ferrous scrap import prices rose by $10/mt from a week ago to settle at $255/mt cfr Turkey for US-origin HMS 1&2 (80:20). Offers by Taiwanese yards for domestic scrap prices were raised citing a fall in scrap generation rate and the resulting supply scarcity. 


On the other hand, South Korean and Chinese steel mills announced price cuts for ferrous scrap purchase prices on weakened consumption rates and to reduce overall production costs, with margins now lower in the finished steel market.  



Taiwan’s domestic ferrous scrap prices rose this week as supplier yards were unwilling to sell ferrous scrap at lower prices. Domestic rebar prices, however, remained flat with no signs of a pick-up in finished steel demand in the country.  

The weekly Davis Index for domestic HMS 1&2 (80:20) in south Taiwan settled at NT$6,300/mt ($210/mt) del plant, up by NT$200/mt. 

The weekly index for HMS 1&2 (80:20) in north Taiwan settled at NT$6,500/mt del plant, up by NT$200/mt.

In South Taiwan, Feng Hsin Steel raised domestic ferrous scrap purchase prices for domestic HMS 1&2 (80:20) to NT$6,100/mt delivered Taichung plant. 

Feng Hsin’s base offers for rebar remained unchanged at NT$13,400-13,500/mt ex-producer. 

Other mills offered rebar grade 40 at NT$13,200-13,300/mt ex-producer after discounts, unchanged from the prior week.

In seaborne trades, US-origin containerised HMS 1&2 (80:20) offers rose in the range $205-210/mt cfr Taiwan.  



In the current COVID-19 emergency condition in the country, trades for ferrous scrap have halted in Japan. Japanese scrap yards were resisting sharp drops in bids, citing a shortage of supply. 

Tokyo Steel lowered ferrous scrap purchase prices by JPY500/mt at two of its works, Tahara and Utsunomiya, effective April 11. 

Bids for #2 HMS delivered Utsunomiya in Kanto region and Tahara in central region dropped to JPY18,500/mt and JPY19,500/mt, respectively. 

Bids have remained unchanged at the other three plants since March 28. Bids are at JPY17,500/mt ($163/mt) del Kyushu plant, at JPY18,500/mt and JPY17,500/mt delivered Okayama and Takamatsu centre.  


South Korea

South Korean steel mills continued to cut domestic scrap purchase prices to save overall costs amid weakened finished steel sales. Many steel mills also have scaled down production and consumption rates have dropped this week. 

Ferrous domestic scrap rates fell by another KRW10,000-15,0000/mt this week as many steelmakers including Hyundai Steel and Dongkuk Steel lowered prices.  

The weekly Davis Index for domestic Heavy A settled Tuesday at KRW247,500/mt ($204/mt) del Incheon, down by KRW7500/mt. 

The Davis Index for Heavy A settled at KRW232,500/mt del Pohang, also down by KRW7,500/mt from the prior Tuesday. 

The weekly Davis Index for domestic Light A settled at KRW217,500/mt delivered Pohang plant, down by KRW7,500/mt.



The weekly Davis Index for HMS 1&2 (80:20) settled at VND5,300,000/mt ($226/mt) delivered south Vietnam, inclusive of taxes, up by VND100,000/mt from last week. The price rise broke a downtrend of three successive weeks. Though, Vietnamese billet and HRC trades remained hampered.  



The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,350/mt ($333/mt) inclusive of 13pc vat delivered to mill in eastern China, down CNY175/mt from the prior week. 

Chinese domestic scrap prices dropped to over a year’s low levels. Chinese steelmakers were looking to save their input costs amid falling finished steel prices in the domestic and export markets. A few mills opted to cut their purchase prices for ferrous scrap.  

Shagang Steel headquartered in Zhangjiagang, east China’s Jiangsu province, held prices for #2 HMS at CNY2,330/mt del Jiangsu plant, inclusive of the 13pc VAT, as per a Davis Index source. 

On the other hand, the company rolled over finish steel prices for shipments between April 10-20.  



Thailand’s domestic scrap prices remained unchanged on subdued domestic steel demand. Thailand also continues to be under lockdown. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7250/mt ($221/mt) delivered Rayong, inclusive of taxes, unchanged from the prior week.



The Malaysian government has extended is national COVID-19 lockdown by two weeks, till April 28. In the absence of any trades and a complete suspension of mining and production related activities, Malaysian ferrous scrap prices remained flat this week, with no bids in the market. The weekly Davis Index for domestic HMS 1&2 (80:20), delivered western mills, settled at MYR840/mt ($193/mt); and the index for HMS 1&2 (80:20) delivered eastern mills settled at MYR915/mt, inclusive of taxes, unchanged from the prior week.


($1= TWD30.07; CNY7.06; THB32.74; MYR4.33; VND23,450.5; KRW1,215.3)

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