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


The weekly Davis Index for HMS 1&2 (80:20) remained unchanged at CNY3,680/mt ($568.12/mt), delivered China consumer on Tuesday. Strict production cuts have lowered the demand for ferrous scrap in China.


Shagang steel lowered scrap bids by CNY50/mt ($7.70/mt) on Aug 19. This is the steelmakers’ third price cut in August. 


The daily domestic billet price in China on Tuesday dropped by CNY110/mt to CNY4,930/mt ($761.10/mt) ex-Tangshan inclusive of VAT. 


International daily iron ore Fe 62pc price index dropped by $22/mt to almost $140/mt cfr North China, compared to a week ago.


South Korea

The weekly Davis Indexes for domestic Heavy A rose by KRW15,000/mt($12.86) to KRW580,000/mt ($497.24/mt) del Incheon and rose by KRW12500/mt($10.72) to KRW582,500/mt ($499.38/mt) del Pohang. Offers for the grade on Tuesday were at KRW585,000/mt del Pohang.


The weekly Davis Index for domestic Light A on Tuesday was at KRW547,500/mt del Pohang, up by KRW15,000/mt. Offers for the grade were heard at KRW550,000/mt del mill Pohang on Tuesday.


Demand has decreased as some steelmakers have halted production for EAF maintenance.


Mills were only interested in high-grade scrap from overseas sellers and focused on domestic HMS and low-grade scrap on easier availability and competitive prices. 



The weekly Davis Indexes for domestic HMS 1&2 (80:20) is flat at TWD12,000/mt ($430.32/mt), del Northern mill, and TWD11,700/mt del Southern mill.


Feng Hsin Steel kept its scrap purchase bids and rebar prices flat for the week to gauge the market direction. 


The weekly Davis Index for imported HMS 1&2 (80:20) settled at $433/mt cfr Taiwan, up $6/mt from prior Tuesday with offers of around $430-435/mt cfr.



Tokyo steel has kept its ferrous scrap purchase prices unchanged since Aug 19. Bids for HMS #2 are at JPY48,500/mt ($442.12/mt) del Tahara, JPY50,000/mt del Okayama, JPY48,500/mt del Kyushu, JPY48,500/mt del Utsunomiya and JPY48,000 del Takamatsu.


For September deliveries, the steelmaker raised listed retail prices by JPY3,000/mt for a few flat products, keeping prices for rebar and other construction steel products unchanged from the prior month.


Demand for HMS #2 could remain weak in Japan. The scrap collection has also weakened.   



The weekly Davis Index for HMS 1&2 (80:20) in Vietnam inched up by VND18,235/mt ($0.80/mt) to VND10,152,770/mt ($444.89/mt) delivered Southern mill. This is due to rising freight rates amid a short supply of empty containers and tight vessel space.  


Vietnam has imposed strict house arrest orders in the southern megacity of Ho Chi Minh City and deployed the army to implement quarantined measures as COVID-19 cases continue to surge. The lockdown is further extended to Sep 15.


Demand for finished steel remained is subdued. While billet offers from mills were heard at $635-$735 fob for September shipments with a couple of mills yet to release their offers. 


A deal for 5,000mt Australian-origin containerized shredded heard at $483/mt cnf Haiphong on Tuesday. 



The weekly Davis index for domestic HMS 1&2 (80:20) settled at THB13,358/mt ($406.13/mt), down by TWD142/mt ($4.32/mt) del Rayong mill. 


Steel mills continued to stay silent amid COVID-19 restrictions. Domestic supply is tight with buyers’ eyeing imported HMS 1&2 (80:20) at $415/mt cfr Thailand. 



The weekly Davis Index for HMS 1&2 (80:20) dropped by MYR5/mt each to MYR1,735/mt ($411.28/mt) del eastern mill and MYR1,705/mt ($404.17/mt) del western mill. 


Malaysia’s king Ismail Sabri Yaakob took charge as the prime minister of the country on Friday which could resolve the political turmoil in the country to some extent. On the other hand, surging COVID-19 cases and an extension of lockdown led to an absence of trades in the country. 


($1= JPY109.67; TWD27.97; CNY6.48; THB32.89; MYR4.22; VND22821.00; KRW1,166.45)

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