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

Domestic ferrous scrap prices in most Asian markets, barring Japan moved up this week due to limited availability. Trades, however, remained thin as finished steel demand is subdued across the world. 

Taiwan’s Feng Hsin steel increased domestic scrap procurement prices. South Korean mills also announced a price hike for domestic scrap purchases on tightened supply. 



Taiwan’s domestic ferrous scrap prices rose this week as yards raised offers amid supply crunch. Finished steel demand, however, remained subdued. 

 The weekly Davis Index for domestic HMS 1&2 (80:20) in south Taiwan settled at NT$6,750/mt ($225/mt) del plant, up by NT$200/mt. The weekly index for HMS 1&2 (80:20) in north Taiwan settled at NT$7,050/mt del plant, up by NT$300/mt. On April 27, Feng Hsin Steel in South Taiwan raised domestic ferrous scrap purchase prices by NT$300/mt. The company’s bids for domestic HMS 1&2 (80:20) are at NT$6,600/mt delivered Taichung plant. Feng Hsin’s base rebar offers remained unchanged at NT$13,700-13,800/mt ex-producer. While billet was priced at NT$12,500/mt ex-plant in the domestic market. 

 In seaborne trades, US-origin containerised HMS 1&2 (80:20) traded in the range $220-225/mt cfr Taiwan, up by $5/mt from prices late last week. The daily Davis Index for imported HMS 1&2 (80:20) settled at $223/mt cfr Taiwan on Tuesday.


Japanese ferrous scrap export prices rose but domestic prices declined this week on weakened demand. Effective April 28, Tokyo Steel lowered its bids by JPY500/mt at Tahara, Okayama and Takamatsu steel centre. Bids for #2 HMS remained unchanged delivered Utsunomiya in Kanto region and Kyushu plant at JPY18,500/mt and JPY17,500/mt, respectively. 

Bids for Busheling scrap at Tahara and Utsunomiya remained at JPY20,500/mt fob Japan.

South Korea 

 South Korean domestic ferrous scrap prices rose by KRW10,000-15,000/mt from the prior week. South Korean steel mills stayed away from buying imported scrap and opted for domestic ferrous scrap as per their requirement. 

 Hyundai Steel announced hiked its procurement prices for domestic scrap on Monday. The steelmaker booked Heavy A at KRW265,000/mt del Incheon plant. Production at some of Hyundai’s plants has been scaled down and scrap purchases remain suspended. 

 The weekly Davis Index for domestic Heavy A settled Tuesday at KRW262,500/mt ($204/mt) del Incheon, up by KRW17,500/mt. The Davis Index for Heavy A settled at KRW245,000/mt del Pohang, also up by KRW15,000/mt from the prior Tuesday. The weekly Davis Index for domestic Light A settled at KRW222,500/mt delivered Pohang plant, up by KRW7,500/mt. 



The weekly Davis Index for HMS 1&2 (80:20) settled at VND5,700,000/mt ($243/mt) delivered South Vietnam inclusive of taxes, up by VND200,000/mt. The Vietnamese government has lifted social distancing measures and manufacturing activities are resuming slowly. Ferrous scrap suppliers were offering domestic scrap at higher prices due to limited supply.  


The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,350/mt ($332/mt) inclusive of 13pc vat delivered to eastern China mill, up by CNY50/mt from the prior week. Prices had increased by CNY50/mt in the prior week. Shagang Steel headquartered in Zhangjiagang, east China’s Jiangsu province, increased purchase prices for #2 HMS (6-10mm thickness) by another CNY50/mt late last week to CNY2,330/mt del Jiangsu plant, inclusive of 13pc VAT as per a Davis Index source. Domestic billet (Q235) prices in Tangshan were reported at CNY3090/mt ex-producer on April 28, down by CNY10/mt from the prior day. 



Thailand’s domestic scrap prices rose as buying interest showed signs of recovery. Shortage of supply also supported prices. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7,700/mt ($237/mt) delivered Rayong inclusive of taxes, up by THB400/mt from the prior week. 



 The weekly Davis Index for domestic HMS 1&2 (80:20) settled at MYR865/mt ($198/mt) delivered western mills, up by MYR10/mt; and the index for HMS 1&2 (80:20) settled at MYR915/mt delivered eastern mills inclusive of taxes, unchanged from the prior week. 


($1= JPY106.7; TWD29.97; CNY7.07; THB32.44; MYR4.36; VND23,445.5; KRW1,217.8)




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