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

Asian weekly domestic ferrous scrap prices remained subdued as a few Chinese steelmakers reopened on Monday. Steel markets will now attempt to gauge when China’s exports will resume which should place downward pressure on ferrous scrap prices into countries like Taiwan and India.
Still, traders are bullish on global ferrous scrap prices in the coming days, driven by an increase in booking activity by Turkish mills. 
The Davis Index for US-origin HMS 1&2 (80:20) settled at $261.35/mt cfr Turkey on Monday, up by $1.46/mt from Feb 7.


The weekly Davis Index for domestic HMS 1&2 (80:20) delivered South Taiwan settled at NT$6,600/mt ($220/mt), down by TWD650/mt. The weekly index for HMS 1&2 (80:20) delivered North Taiwan settled at NT$6,850/mt plant, down NT$550/mt. 


Feng Hsin Steel lowered its domestic scrap purchase prices as imported ferrous scrap prices fell by $15/mt last week. The steelmaker lowered domestic heavy melt scrap prices by NT$300-500/mt depending on the grade, effective Feb 10. Feng Hsin is paying NT$6,400/mt for domestic HMS 1&2 (80:20) delivered Taichung plant, down NT$300/mt from NT$6,700/mt on Feb 8. Feng Hsin’s Grade 40 rebar prices including local taxes are at NT$14,800/mt ex-plant. 


US-origin containerised HMS 1&2 (80:20) prices dropped in the range of $228-230/mt cfr Taiwan this week from $230-235/mt cfr late last week. Japanese H1: H2 in small bulk cargoes was offered at $240-245/mt cfr Taiwan, down by $10/mt.  




Japanese domestic ferrous scrap prices fell by JPY1,000/mt effective Feb 8, after Tokyo Steel slashed their purchase price for the sixth time in 15 days. New bid for #2 HMS is at JPY21,000/mt del Utsunomiya plant in the Kanto region effective Feb 8. Bids for #2 HMS in Tahara, Kyushu, Okayama and Takamatsu were revised to JPY21,500/mt, JPY21,000/mt, JPY20,000/mt and JPY19,000/mt, respectively. Bids for Busheling dropped by JPY1,000/mt to JPY23,500/mt del Tahara and JPY23,000/mt del Utsunomiya.


Japanese yardsawait results of Kanto Tetsugen tender results scheduled on Feb 12 . Hyundai Steel opened tender for Japanese scrap with #2HMS at JPY23,000/mt fob Japan last week. The steelmaker is likely to lower its bids again this week if domestic scrap prices fall further.


South Korea

South Korean domestic ferrous scrap prices dropped in line with a $20-25/mt drop in bulk import prices in the prior week. 

The weekly Davis Index for domestic Heavy A del Incheon fell by KRW7,500/mt ($6.5/mt) to settle Tuesday at KRW275,000/mt ($238/mt) and fell by KRW5,500/mt to KRW265,000/mt del Pohang. Hyundai Steel and Korean Steel dropped bids by KRW5,000-10,000/mt this week. 


The weekly Davis Index for domestic Light A delivered Pohang plant settled at KRW255,000/mt, down by KRW2500/mt. 


The weekly Davis Index for HMS 1&2 (80:20) delivered South Vietnam settled Tuesday at VND5,600,000/mt ($240/mt) inclusive of taxes, down from VND6,000,000/mt on prior Tuesday amid weak demand for finished steel. 

Steel demand which slowed post Tet holidays is yet to pick up. Imported Hot Rolled Coil prices also remained on a downtrend since markets reopened in February first week. 


A Chinese mill traded a March shipment cargo of SAE1006 HRC at $475/mt cfr Vietnam, down $10/mt cfr from the prior week, with offers for the in the range of $478-480/mt cfr Vietnam. Traders offered SS400 HRC at $460/mt cfr Ho Chi Minh for May shipments.   


The weekly Davis Index for domestic HMS 1&2 (80:20) China settled unchanged at CNY2,575/mt ($365/mt) inclusive of 13pc vat delivered to mill. Businesses which remained shut since Lunar New Year holidays are slowly resuming in China. In the absence of full-fledged operations, demand for ferrous scrap was subdued. 



The weekly Davis Index for domestic HMS 1&2 (80:20) delivered Rayong settled at THB8,875/mt ($284/mt), from the prior week, inclusive of taxes. 



The weekly Davis Index for domestic HMS 1&2 (80:20) delivered western mills dropped by MYR30/mt ($7.3/mt) to MYR890/mt ($224/mt), while the index for HMS 1&2 (80:20) delivered eastern mills fell by MYR45/mt to MYR1,010/mt, inclusive of taxes. 

($1=NT30.00, CNY6.9, THB30.38, MYR4.073 VND23172.5, KRW1,165.83)

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