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

Asian weekly domestic ferrous scrap prices inched down this week amidst the spread of Covid-19 across the world. Scrap consumption declined in Japan and China with production hampered in their domestic auto sectors. Additionally, finished steel prices also failed to pick up. Mills in Southeast and Northeast Asia lowered their production to match weak global demand. 


Taiwan’s domestic scrap prices declined this week due to subdued demand and a drop in global steel prices. The weekly Davis Index for domestic HMS 1&2 (80:20) in South Taiwan settled at NT$7,000/mt ($234/mt) del plant, marginally down by NT$50/mt. The weekly index for HMS 1&2 (80:20) in North Taiwan settled at NT$7,300/mt del plant, down by NT$50/mt. 

In South Taiwan, Feng Hsin Steel’s domestic scrap purchase prices were unchanged. It is paying NT$6,900-7,000/mt for domestic HMS 1&2 (80:20) delivered Taichung plant. The steelmaker also kept its grade 40 rebar prices including local taxes flat at NT$15,300-15,500/mt ex-plant, from a week ago. 


Bids for imported scrap fell by $5-10/mt this week. Purchases of imported scrap declined post the Peace Memorial Day national holiday on Friday. US-origin HMS 1&2 (80:20) traded at $240/mt cfr Taiwan, a drop from $245-246/mt cfr Taiwan in the prior week. Mills were bidding at $235-238/mt cfr Taiwan on Tuesday, with no trades at those levels yet.


South Korea 
South Korean domestic ferrous scrap prices dropped for a third successive week. The weekly Davis Index for domestic Heavy A del Incheon settled at KRW267,500/mt ($238/mt), down by KRW2,500/mt. The index for the same grade settled at KRW257,500/mt del Pohang, also down by KRW2,500/mt. The weekly Davis Index for domestic Light A delivered Pohang plant settled at KRW245,000/mt down KRW5,000/mt. 


On Monday, Hyundai Steel lowered its Light A scrap purchase prices by KRW10,000/mt to KRW245,000/mt. Dongkuk Steel is likely to cut domestic scrap purchase price by KRW10,000/mt on Mar 9.  



Japanese domestic and export ferrous scrap markets followed two different price directions this week. Domestic scrap prices were flat to down in the week. In the export market, Japanese origin #2 HMS traded at JPY24,000-24,500/mt fob ($223.5-22 Japan late last week, up by JPY1,000-1500/mt from the week ending Feb 22. 

Price gap between #2 HMS in the domestic and export widened to JPY3,000-4,000/mt from the usual JPY1,000-2,000/mt.   


Tokyo Steel announced two price cuts for its domestic scrap purchase in a week. The mill lowered its ferrous scrap bids further by JPY500/mt to JPY19,000/mt del Kyushu plant effective Mar 4. Tokyo Steel’s earlier purchase price drop, also by JPY500/mt was only at its Kyushu plant as the region is witnessing slow demand for finished steel. In its latest announcement on Mar 3, the steelmaker has also lowered its bids for scrap purchase at Utsunomiya plant by JPY500/mt. Bids for #2 HMS are at JPY19,500/mt del Utsunomiya plant in the Kanto region effective Mar 4.  Bids for #2 HMS in Tahara, Okayama and Takamatsu, remained unchanged at JPY20,500/mt, JPY19,000/mt and JPY18,000/mt, respectively. Bids for Bushelling remained at JPY22,500/mt del Tahara and JPY21,500/mt del Utsunomiya.




The weekly Davis Index for HMS 1&2 (80:20) delivered South Vietnam settled Tuesday at VND5,800,000/mt ($240/mt) inclusive of taxes, unchanged from the prior Tuesday.




The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,520/mt ($361/mt) inclusive of 13pc vat delivered to mill in eastern China, down CNY30/mt. Domestic scrap prices declined in China markets with inventories piled up with steelmakers and the resultant production cuts. Shagang steel in eastern China lowered its purchase prices by CNY30/mt to CNY2,600/mt for #2HMS and by CNY50/mt to CNY2,700/mt for #1HMS del Jiangsu in China.




The weekly Davis Index for domestic HMS 1&2 (80:20) delivered Rayong settled at THB8,750/mt ($278/mt) inclusive of taxes, down by THB50/mt.  




The weekly Davis Index for domestic HMS 1&2 (80:20) delivered western mills settled flat at MYR880/mt ($209/mt), while the index for HMS 1&2 (80:20) delivered eastern mills was at MYR975/mt inclusive of taxes, also flat. Political instability in the country and lack of clarity about new certifications for ferrous scrap imports kept ferrous scrap trades limited.   

($1= TWD29.94; CNY6.98; THB31.55; MYR4.21; VND23,235.5; KRW1,192.48; JPY107.36)  


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