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

Weekly domestic ferrous scrap prices in Asian markets were mixed on Tuesday. Prices fell in South Korea, rose in Taiwan and Vietnam, and were flat in Japan and China. Finished steel demand was subdued in major Asian domestic markets. Imported ferrous scrap prices, however, rose in the week.    



Taiwan’s domestic scrap prices increased this week mirroring the rise in imported scrap prices. The weekly Davis Index for domestic HMS 1&2 (80:20) delivered South Taiwan settled at NT$6,900/mt ($220/mt), up by NT$300/mt. The weekly index for HMS 1&2 (80:20) delivered North Taiwan settled at NT$7,050/mt plant, up NT$200/mt. Few mills expect prices to increase by  NT200-300/mt in this week.

Feng Hsin Steel increased its domestic scrap purchase prices by NT$200/mt effective Feb 19. The mill is paying NT$7,000/mt for domestic HMS 1&2 (80:20) delivered Taichung plant, up NT$200/mt from the prior week. Increased input cost and hopes of a rise in finished steel demand drove Feng Hsin Steel to cancel discounts on its Grade 40 rebar. Price including local taxes was kept flat at NT$14,800/mt ex-plant.

Other mills are in a wait-and-see mode and are likely to book scrap once global finished steel demand picks up.

Taiwan’s imported scrap prices rebound in the week. US-origin containerised HMS 1&2 (80:20) offers were in the range of $230-235/mt cfr Taiwan this week. Trades, however, concluded at $220-225/mt cfr Taiwan late last week. Japanese H1: H2 in small bulk cargoes was offered at $250-255/mt cfr Taiwan, up by $10/mt, but no major deals were reported.



The index for Japanese #2 HMS remained flat at JPY20,000/mt del mill on Tuesday.

Last week, Tokyo Steel announced a fourth price cut for domestic scrap purchase in February. Bids for #2 HMS remained flat at JPY20,000/mt del Utsunomiya plant in the Kanto region effective Feb13. Bids for #2 HMS in Tahara, Kyushu, Okayama and Takamatsu reduced by JPY1,000/mt to JPY20,500/mt, JPY20,000/mt, JPY19,000/mt and JPY18,000/mt, respectively. Bids for Busheling too dropped by JPY1,000/mt to JPY22,500/mt del Tahara and JPY22,000/mt del Utsunomiya.


South Korea

South Korean domestic ferrous scrap prices fell as finished steel demand weakened in domestic markets. HRC export prices too declined in the week. The weekly Davis Index for domestic Heavy A del Incheon fell by KRW5,000/mt ($4.2/mt) to settle at KRW270,000/mt ($238/mt) and by KRW5,000/mt to KRW260,000/mt del Pohang. 

Mills cut scrap purchase prices by KRW5000-10,000/mt from the prior week. Hyundai Steel, Posco Steel and YK Steel lowered prices on Feb 18, Dongkuk Steel and SeAH Steel on Feb 19, Davis learned from a source. 

The weekly Davis Index for domestic Light A delivered Pohang plant settled at KRW250,000/mt, down by KRW5000/mt. 

On Feb 14, Hyundai Steel lowered bids for Japanese origin scrap by JPY1,000/mt for all grades. Last week, Hyundai booked 60,000mt of #2 HMS at JPY22,000/mt fob Japan. Bids for shredded, P&S and Bushling were at JPY24,500/mt fob Japan and for #1 HMS at JPY23,000/mt fob Japan. 



The weekly Davis Index for HMS 1&2 (80:20) delivered South Vietnam settled at VND5,700,000/mt ($240/mt) inclusive of taxes, up from VND5,600,000/mt. Prices rose fuelled by a rise in imported scrap prices. Steel mills now wait for finished steel to go up in global markets before booking more scrap.

Formosa Steel kept HRC prices flat for March shipments from its last set of prices. SAE1006 was at $515/mt cif and SS400 and pipe making at $510/mt cif Vietnam.

Japanese scrap suppliers offered #2 HMS in bulk cargoes at $250-255/mt cfr Vietnam, however, bids from mills were heard at $245/mt cfr Vietnam. Trades were limited. 



The weekly Davis Index for domestic HMS 1&2 (80:20) settled unchanged at CNY2,575/mt ($365/mt) inclusive of 13pc vat delivered to mill in eastern China. Though Chinese markets are slowly reopening, export shipments are likely to be delayed by a month at the minimum. Asian importers, who suffered the burden of delays sought damages from steelmakers.

Few mills have recommenced manufacturing even without finished steel orders. These mills, however, are yet to resume ferrous scrap bookings.



The weekly Davis Index for domestic HMS 1&2 (80:20) delivered Rayong settled at THB8,825/mt ($283/mt) down THB50/mt inclusive of taxes. 



The weekly Davis Index for domestic HMS 1&2 (80:20) delivered western mills settled at MYR900/mt ($217/mt), up MYR10/mt. The index for HMS 1&2 (80:20) delivered eastern mills remained flat at MYR1,010/mt inclusive of taxes.  


($1=NT30.14; CNY7; THB31.24; MYR4.15; VND23,248.63; KRW1,191.08)


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