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

Domestic ferrous scrap prices in most Asian markets were flat to up this week as steelmaking and other downstream activities picked up. Trades picked driven by a strong global finished steel and bullish indications from stock markets. A few buyers in Southeast Asia resumed bulk ferrous scrap bookings hinting at positive sentiment in most domestic markets.  



Japan’s domestic ferrous scrap prices continued to move up as Tokyo steel and other electric arc steelmakers raised their bids.  

Tokyo steel announced a seventh successive price hike on Tuesday. Bids were increased by JPY500/mt for deliveries to Tahara, Kyushu and Takamatsu plants and by JPY1,000/mt for scrap delivered Okayama plant. Purchase prices, however, were kept flat at Utsunomiya work. 

The mill’s purchase prices for #2 HMS was JPY26,500/mt ($247/mt) delivered Utsunomiya plant in Kanto region, JPY25000/mt delivered Kyushu and JPY22,000/mt delivered Okayama plant. Bids for busheling by for deliveries to Tahara and Utsunomiya plants are at JPY27,000/mt and JPY26,500/mt del plant, respectively. 

Japanese exporters feel prices could have reached short term peak and may decline soon. In the export market, #2 HMS was offered at JPY27,000/mt fob Japan on Tuesday. 


South Korea 

South Korean domestic ferrous scrap prices continued to rise as mills increased bookings amid falling ferrous scrap inventories. Major steelmakers like Hyundai and Dongkuk steel have resumed bulk purchases from the US, Japan and Russia.


Steelmakers including Dongkuk, SeAH, YK, Daehan, Hyundai Steel have raised domestic scrap purchase prices by KRW10,000-15,000/mt del plant this week since supply remains limited. 

The Davis Index for domestic Heavy A settled at KRW330,000/mt ($262/mt) del Incheon, up by KRW15,000/mt, from the prior Tuesday. The Davis Index for Heavy A settled at KRW315,000/mt del Pohang, up by KRW15,000/mt from the prior Tuesday. The weekly Davis Index for domestic Light A settled at KRW290,000/mt delivered Pohang plant, up by KRW15,000/mt. 

In a recent bulk trade, South Korean mill booked 10,000mt Russian A3 at $260/mt cfr South Korea and another mill was heard to have bought 20,000mt A3 at $269/mt cfr South Korea.

Japanese #1 busheling cargo trade concluded at JPY31,500/mt cfr South Korea. A leading supplier from the US West Coast sold #1 HMS for July shipment at $279/mt cfr South Korea.  



Domestic ferrous scrap prices in the country rose by NTD200-400/mt from the prior week in line with increased imported scrap offers for a second successive week. Scrap demand picked up on the back of increased production of billets, demand for which is strong from Southeast Asia. 

The Davis Index for domestic HMS 1&2 (80:20) in south Taiwan settled at NTD7,500/mt ($253/mt) del plant, up by NTD300/mt from the prior Tuesday. The weekly index for HMS 1&2 (80:20) in North Taiwan settled at NTD7,500/mt del plant, up by NTD250/mt. 

Domestic ferrous scrap prices picked up following the rise in imported scrap offers for HMS 1&2 (80:20) which were at $250/mt cfr Taiwan. 

In South Taiwan, Feng Hsin Steel hiked domestic ferrous scrap purchase prices for HMS 1&2 (80:20) by NTD300/mt to NTD7,400/mt delivered Taichung plant from the prior Tuesday. The steelmaker’s base offers for rebar were at NTD14,300-14,500/mt ex-plant. 

In seaborne trades, US-origin containerised HMS 1&2 (80:20) traded at $250-252/mt cfr Taiwan late last week. Offers for HMS 1&2 (80:20) then rose to $252-257/mt cfr Taiwan on Tuesday. 



The Davis Index for HMS 1&2 (80:20) settled at VND6,100,000/mt ($262/mt) delivered South Vietnam inclusive of taxes, unchanged from the prior week. Trades of domestic scrap picked up this week as imported scrap prices from both US and Japan remained firm. A few bulk cargoes comprising of shredded from the US West Coast were offered at $287/mt cfr Vietnam, up by $10/mt from the prior week.



In China, Shagang Steel headquartered in Zhangjiagang, Jiangsu province held bids for domestic #2 HMS (6-10mm thickness) on Tuesday at CNY2,610/mt del Jiangsu plant inclusive of the 13pc VAT. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,600/mt ($367.3/mt) inclusive of 13pc vat delivered to mill in eastern China, down by CNY25/mt. 

The ongoing rainy season in the northern region and weaker semi-finished steel demand pulled prices down. 

In the domestic market, prices for billet were at CNY3,300/mt ex-Tangshan mill on Tuesday, down by CNY30/mt from late last week. Rebar and HRC export prices from China, however, increased on the back of rising iron ore import prices driven by fears of supply disruption and higher steel futures. 



The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB8,500/mt ($274/mt) delivered Rayong inclusive of taxes, unchanged. The rise was on the back of increased billet prices and limited availability of ferrous scrap in the domestic market. 

A major electric arc steelmaker in the country was heard to have booked 30,000mt shredded bulk cargo at $287/mt cfr Thailand from the US West Coast. This cargo is scheduled for July shipment. 



The weekly Davis Indexes for domestic HMS 1&2 (80:20) settled unchanged at MYR975/mt ($228/mt) delivered western mills and MYR1,010/mt delivered eastern mills inclusive of taxes.  


($1= JPY107.36; NTD29.65; CNY7.08; THB31.01; MYR4.28; VND23,265.5; KRW1,211.8) 


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