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

Containerized imported ferrous scrap prices in East Asian markets like Taiwan and South Korea declined this week despite tight supply.



The daily index for US-origin containerized HMS 1&2 (80:20) Wednesday fell by $6/mt at $265/mt cfr Taiwan. Limited deals were heard during the holiday week at the index price. Buying prices fell and importers expect a further drop this week before Taiwanese mills cautiously plan to buy. 


Though Turkish mills stayed away from the market, suppliers believe bookings could resume in October end and lift prices. Offers for South American-origin HMS 1&2 (80:20) were at $265/mt cfr, similar to US-origin prices. No deals were heard. Importers expect mills to bid at $255-260/mt. Finished steel sales are still sluggish in the country and thus mills resorted to buying domestic scrap on a need basis. 


Trading may remain thin in Taiwan for the next few days due to national holidays from Oct 9-11. 


South Korea

The weekly Davis Index for containerized HMS 1&2 (80:20) settled at $263/mt cfr South Korea, Wednesday, down $7/mt. Import prices for other grades also declined as mills reduced bids on the back of sluggish finished steel demand. ‘Chuseok’ or the Korean thanksgiving holidays till Oct 2 kept trades limited as mid-sized mills shut their EAFs and are yet to return to the market. Domestic scrap prices rose this week by KRW5000-15,000/mt del mill as they preferred domestic scrap over imported.


Hyundai Steel refrained from bidding for Japanese scrap in anticipation of further reduction in prices, while POSCO booked 4,000mt shredded scrap at JPY32,000/mt cfr Korea or JPY30,500/mt fob. Limited and cautious buying was seen by Korean mills who expect finished steel export and domestic demand to take time to recover with China halting imports due to Golden festival.


The weekly Davis Index for P&S 5ft, #1HMS and shredded fell by $7/mt, $6/mt, and $10/mt to $276/mt, $268/mt, and $273/mt cfr South Korea, respectively. There were very few sellers in the market for containerised with mills focusing more on cheaper bulk scrap, as per market participants, steel mills were negotiating deals with Japanese and US yards.


The Davis Index for domestic Heavy A delivered Incheon and Pohang, Tuesday, settled up by KRW5,000/mt ($4.30/mt) and KRW15,000/mt ($12.91/mt) at KRW320,000/mt ($276/mt) delivered mills, respectively, with major steel mills like Hyundai, Dongkuk and others buying limited scrap at index prices.


South American suppliers offered HMS 1&2 (80:20) at $265/mt cfr flat from week prior due to shortage of ferrous scrap supplies from the region.


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