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

Domestic ferrous scrap prices in most Asian markets dropped sharply this week following weakened demand. Finished steel demand remained weak while ferrous scrap inventories remained sufficient to match current requirement in most countries.  


Japan’s domestic ferrous scrap prices remained on a downward trend. Tokyo steel mill by JPY500-1,000/mt effective from June 30. The steelmaker lowered bids at Utsunomiya by JPY1,000/mt on the other hand by JPY500/mt at Tahara plant in Japan. The prices, however, at other three works, Okayama, Kyushu and Takamatsu centre remained unchanged.  

After the latest revision, purchase prices for #2 HMS will be at JPY24,000/mt ($224/mt) delivered Utsunomiya works in Kanto region, down JPY1,000/mt from June 26. Since June 12, the prices at delivered Utsunomiya works dropped in total by JPY2,500/mt.  

Bids for #2 HMS were reported at JPY25,000/mt delivered Kyushu and JPY24,500/mt delivered Okayama plant. In the export market, #2 HMS was offered at JPY21,500-22,000/mt fas Japan on Tuesday down JPY1,000-1,500/mt from the prior week. 


South Korea  

South Korean domestic ferrous scrap prices dropped as mills witnessed high ferrous scrap inventories piled up. Dongkuk, SeAH, YK, Daehan and Hyundai Steel lowered domestic scrap purchase prices by KRW10,000/mt del plant this week.  

The Davis Index for domestic Heavy A settled at KRW307,500/mt ($255.8/mt) del Incheon, down by KRW12,500/mt, from the prior Tuesday. The Davis Index for Heavy A settled at KRW290,000/mt del Pohang, down by KRW10,000/mt from the prior Tuesday. The weekly Davis Index for domestic Light A settled at KRW265,000/mt delivered Pohang plant, down by KRW10,000/mt. After last week’s bulk cargoes deal from the US, Japan and Russia, demand for scrap in South Korea remained weak this week.  



Domestic ferrous scrap prices in the country dropped after returning from Dragon boat holidays this week. The Davis Index for domestic HMS 1&2 (80:20) in south Taiwan settled at NTD6,900/mt ($234/mt) del plant from the prior Tuesday. The weekly index for HMS 1&2 (80:20) in North Taiwan settled at NTD7,150/mt del plant, down NTD600/mt. In South Taiwan, Feng Hsin Steel lowered domestic ferrous scrap purchase prices for HMS 1&2 (80:20) to NTD6,900/mt delivered Taichung plant from the prior Tuesday. The steelmaker’s base offers for rebar were unchanged at NTD14,000-14,200/mt ex-plant. A few mills offered discounts on listed prices in order to boost demand. In seaborne trades, US-origin containerised HMS 1&2 (80:20) traded at $240-245/mt cfr Taiwan, down $5/mt last week. Bids for South America and Central American HMS 1&2 (80:20) were heard at $235-240/mt cfr Taiwan on Tuesday, down $5/mt from the prior week.  



The Davis Index for HMS 1&2 (80:20) settled at VND5,900,000/mt ($254/mt) delivered South Vietnam inclusive of taxes, down VND100,000/ mt from the prior week.  



In China, Shagang Steel held bids for domestic #2 HMS (6-10mm thickness) 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 ($367.6/mt) inclusive of 13pc vat delivered to mill in eastern China, up by CNY15/mt from the prior week. Heavy rains and floods in the northern region and weakened futures lowered semi-finished steel prices in China.  


In the domestic market, prices for billet were at CNY3,320/mt ex-Tangshan mill on Tuesday, unchanged from last week. Rebar and HRC export prices from China, however, dropped on the back of weak demand in the overseas market.  



The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7,900/mt ($256/mt) delivered Rayong inclusive of taxes. Southeast Asian billet prices dropped in recent deals reported at around $390-400/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 unchanged at MYR945/mt ($221/mt) delivered western mills, down MYR15/mt and MYR975/mt delivered eastern mills, down MYR17/mt inclusive of taxes. Domestic ferrous scrap prices dropped following lowered imported scrap prices and mills thus preferred cheaper domestic scrap this week. In seaborne market, imported HMS 1&2 (80:20) scrap traded at $235-240/mt cfr Malaysia from South and Central America.  


($1= JPY107.73; NTD29.44; CNY7.07; THB30.89; MYR4.29; VND23,207.9; KRW1,202.4)


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