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

Trading activities for finished steel and ferrous scrap in Southeast and East Asian markets remained subdued amid COVID-19 related restrictions. Ferrous scrap importers in Taiwan, Vietnam, and South Korea awaited clarity on prices from the Kanto Tender in Japan which will be conducted on Aug 19. Domestic ferrous scrap prices, however, showed mixed trends from the prior week.  



The weekly Davis Index for HMS 1&2 (80:20) remained unchanged at CNY3,680/mt ($/mt), delivered China consumer on Tuesday. Amid stricter production cuts demand for ferrous scrap slowed. While for imported ferrous scrap bids lagged a lot in China. 


Port operations were affected by enhanced quarantine controls at various sites and transportation facilities, resulting in logistic challenges. For export, demand for HRC was flat with prices at $940-950/mt fob China.  


The daily domestic billet price in China on Tuesday dropped by CNY40/mt to CNY5,040/mt ($780/mt) ex-Tangshan inclusive of VAT. International daily iron ore Fe 62pc price index recorded marginal uptick by $1.65/dmt to $162.55/dmt cfr North China on Monday.


South Korea

The weekly Davis Indexes for domestic Heavy A declined by KRW5,000/mt to KRW565,000/mt ($480.9/mt) del Incheon and remained unchanged at KRW570,000/mt ($496.59/mt) del Pohang. Offers for the grade on Tuesday were at KRW580,000/mt del Pohang.  


The weekly Davis Index for domestic Light A on Tuesday was at KRW532,500/mt ($453.46/mt) del Incheon. Offers for the grade ranged between KRW535,000-545,000/mt del mill Pohang on Tuesday.


Trading in the domestic market slowed as many mills remained shut due to maintenance. A supply crunch continued. 

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



The weekly Davis Indexes for domestic HMS 1&2 (80:20) declined by TWD300/mt to TWD12,000/mt ($430.32/mt), del Northern mill and TWD11,700/mt del Southern mill.  

On Monday, Feng Hsin Steel lowered its scrap purchase bids by TWD200/mt while rebar prices were decreased by TWD300/mt ($10.77/mt). The producer kept the prices of section steel flat.  

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 kept its ferrous scrap purchase prices unchanged since August 7. Bids for HMS #2 were at JPY49,500/mt ($451.39/mt) del Tahara, JPY50,500/mt ($458.54/mt) del Okayama, JPY49,000/mt ($444.92/mt) del Kyushu, and JPY49,000 ($444.92/mt) 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. Scrap collection also remains low amid Obon holidays.  



The weekly Davis Index for HMS 1&2 (80:20) in Vietnam inched down by VND18,235/mt ($0.79/mt) to VND9,922,500/mt ($434.20/mt) delivered Southern mill.  


COVID-19 cases in Vietnam continued to rise recording new levels on Saturday. Demand for finished steel was thus remained silent. Firm imported scrap offers supported domestic scrap prices. COVID-19 restrictions are likely to continue till Aug 22 in the business hub Ho Chi Minh along with 18 cities and provinces in the southern region.  


ASEAN billet demand remained subdued while prices were on a downtrend, falling below $690-695/mt cfr China from ASEAN countries by $10/mt from a week earlier.  



The weekly Davis index for domestic HMS 1&2 (80:20) settled at THB13,500/mt ($406/mt), up by TWD250/mt ($7.5/mt) del Rayong mill. Thailand continues to extend the area of restriction measures in the country. Steel mills continued to stay silent amid COVID-19 restrictions. Domestic supply was tight with offers for imported HMS 1&2 (80:20) at $420/mt cfr Thailand.  



The weekly Davis Index for HMS 1&2 (80:20) settled at MYR1,740/mt ($410.5/mt) del eastern mill and MYR1,710/mt ($403.5/mt), up MYR30/mt ($7.07/mt) del western mill. The political situation in the country worsened with the PM stepping down. Surging COVID-19 cases and an extension of lockdown led to an absence of trades in the country.  


($1= JPY109.79; TWD27.88; CNY6.47; THB33.3; MYR4.23; VND22829; KRW1,175)

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