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

Domestic ferrous scrap markets in Southeast Asia are mostly silent as COVID-19 related restrictions continue to hit steel demand and pressure prices. 



The weekly Davis Index for HMS 1&2 (80:20) dropped by CNY20 to CNY3,730/mt ($573.63/mt) del mill on Tuesday.  


Domestic billet prices rose to CNY5,260 ($808.92/mt) ex-Tangshan, including VAT, up by CNY80/mt ($12.30/mt) from a week ago. 



In the global market, ferrous scrap prices have remained largely stable. In the domestic market, Tangshan province continued a strict stance on production control. Steel futures are fluctuating in China on a daily basis amid expected policy changes and harsh weather conditions. Heavy rains in Henan province and the approaching summer season in the rest of the provinces have made it difficult for market participants to gauge the price direction.


South Korea

The weekly Davis Index for domestic Heavy A settled at KRW565,000/mt ($489.68/mt) del Incheon, up by KRW7,500/mt ($6.50/mt) and KRW570,000/mt ($494.02/mt) del Pohang, up by KRW5,000/mt ($4.33/mt).  


The weekly Davis Index for domestic Light A settled flat at KRW540,000/mt ($468.01/mt) del Pohang. Offers for the grade ranged from KRW535,000/mt-KRW545,000/mt



The weekly Davis indexes for domestic HMS 1&2 (80:20) settled at TWD12,300/mt ($438.23/mt), down TWD300/mt del Northern mill and TWD12,000/mt ($427.54/mt), down TWD400/mt del Southern mill. 


Feng Hsin Steel lowered its scrap purchase bids by TWD300/mt ($10.7/mt) and kept rebar prices flat.


The Davis Index for imported HMS 1&2 (80:20) settled at $445/mt cfr Taiwan, down $10/mt from Tuesday. The offer was heard at $450-$455/mt, but no bids were active. 


Taiwanese scrap buyers have taken a backseat after buying actively in mid-July. 



Tokyo Steel has kept its ferrous scrap purchase prices unchanged. Bids for #2 HMS at JPY50,000/mt ($454/mt) del Tahara. While bids for the grade at JPY50,500/mt ($458.54/mt) del Okayama, JPY49,000/mt ($444.92/mt) del Kyushu, and JPY49,000 ($444.92/mt) del Takamatsu.



The weekly Davis Index for HMS 1&2 (80:20) in Vietnam fell VND100,000/mt ($4.35/mt) to VND10,250,000/mt ($445.53/mt) delivered Southern mill due to a rise in COVID-19 cases. 


Billets heard at $670-$705 fob Hai Phong for August shipment.


Offers for billet were at $705/mt-$715 cfr China/Taiwan/Manila for September shipment. 



The weekly Davis index for domestic HMS 1&2 (80:20) settled at THB13,350/mt ($405.28/mt), down by TWD55/mt ($1.67/mt) del Rayong mill. Thai mills continued to stay silent amid COVID-19 restrictions. Buyers are largely silent. Construction activities in the country are stalled as the government sealed some construction camps on rising COVID-19 infections. 



The weekly Davis Index for HMS 1&2 (80:20) settled at MYR1,730/mt ($408.79/mt) del eastern mill and MYR1,700/mt ($401.70/mt), down MYR20/mt ($4.73/mt) del western mill. The COVID-19 situation in the country has deteriorated. However, the government has reiterated it will not extend the lockdown post-Aug 1. The month-long suspension of business activities has turn citizens furious in the country. 


($1= JPY110.13; TWD28.07; CNY6.50; THB32.94; MYR4.23; VND23006.50; KRW1,153.81)

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