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


The weekly Davis Index for the HMS (80:20), Tuesday, remained unchanged at CNY3720/mt ($582.72) delivered mill. Shagang Steel has successively lowered scrap purchase prices nine times since May 16. The steelmakers’ buying prices fell by CNY55/mt on June 1 at all works. The mill lowered rebar (HRB400,16-25 mm) prices by CNY350/mt ($55/mt) to CNY5,500/mt ($910/mt) ex-works for deliveries in the first half of June, according to the pricing policy released on June 1. 


Amid volatile spot market prices, domestic billet prices, Tuesday, rose by CNY60/mt to CNY5,000/mt ($783.22/mt) ex-Tangshan including VAT.


Despite high production costs, the company lowered prices for long steel to match the plunge in the spot market. Also, steelmakers in China are under pressure by the government’s efforts to tame steel prices. The Chinese government is formulating ways to control prices of raw material such as iron ore and steel in the domestic market. 


Steel prices are expected to adjust downwards amid the start of the rainy season in southern China. Steel demand as well as the excitement among steel producers to ramp production has started to fizzle. Some steelmakers claim the gap between steel and ore prices has widened while the prices of EAF-made rebar and long-process rebar have dropped to the cost line and margins have shrunk.


South Korea

The weekly Davis Index for domestic Heavy A, Tuesday, dropped by KRW10,000/mt ($9.02/mt) to KRW507,500/mt ($457.75/mt) delivered Incheon. While the index for the grade rose KRW10,000/mt to KRW515,000 ($464.52/mt) delivered Pohang. 


In the Pohang region, prices for domestic scrap reduced by KRW10,000/mt to KRW502500/mt delivered from the prior week. The weekly Davis Index for domestic Light A settled at KRW511,500/mt ($461.36/mt) delivered Pohang, down by KRW10,000/mt. 


Scrap prices dropped amid a severe short supply of steel in South Korea that has paused various construction projects. 


On the other hand, South Korean steelmakers hiked automotive steel prices for the first time in four years to offset the increase in commodity prices, according to local media. Posco has also revised its terms with Korea’s three major shipbuilders to increase the price of steel plates.



The weekly Davis Indexes for domestic HMS 1&2 (80:20) dipped by TWD600/mt to TWD12,300/mt and TWD12,100/mt delivered Northern and Southern mill, respectively.  


Taiwanese mills believe billet prices could rise in China’s domestic market. Offers for Southeast and East Asian billet increased by $61 to $783.24/mt cfr China. 


Feng Hsin kept domestic scrap purchase prices stable. 



EAF steelmaker Tokyo Steel has kept its finished steel prices unchanged since May 18. While bids for #2 HMS remain unchanged at JPY51,500/mt delivered Tahara works, JPY50,000/mt delivered Okayama and Kyushu, JPY48,000/mt delivered Utsunomiya, and JPY48,500/mt delivered Takamatsu. Scrap supply continues to be tight in Japan but demand has softened weighing down prices.



The weekly Davis Index for HMS 1&2 (80:20) in Vietnam fell VND250000/mt ($10.85/mt) to VND10,550,000/mt ($457.73/mt) delivered Southern mill.


In the container market, offers for FEUs of HMS 1&2 (80:20) showed a marginal drop in the range of $450-455/mt cfr Vietnam. Vietnamese EAF makers have decided to stay away from ferrous scrap purchases on weak demand.



The weekly Davis index for domestic HMS 1&2 (80:20) declined by THB75/mt ($2.4/mt) to THB14,150/mt delivered Rayong mill. Thai mills focused on domestic scrap purchases amid increasing COVID-19 cases. Offers for HMS 1&2 (80:20) heard at $450-460/mt cfr Thailand. 



The weekly Davis Index for HMS 1&2 (80:20) fell MYR30/mt and MYR25/mt to MYR1,875/mt delivered eastern mill and MYR1,850/mt delivered western mill. 


Malaysia goes into lockdown again on Tuesday till June 14 which has led automakers Toyota and Honda to shut plants in the country. 


($1= JPY109.63; TWD27.85; CNY6.38; THB31.17; MYR4.14; VND23048.54; KRW1108.70)

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