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

Containerised imported ferrous scrap prices in East Asian markets like Taiwan and South Korea dropped by $5-10/mt from the prior week. Mills preferred buying domestic scrap which dropped by $10/mt in Taiwan and around $15-20/mt in South Korea, pulling bids down for imported scrap. However, supply was scarce this week with very thin trades reported.  



The index for US-origin containerized HMS 1&2 (80:20) settled flat at $277/mt cfr Taiwan on Wednesday, while down $5/mt from a week ago. As Japanese and US-origin bulk ferrous prices were under pressure this week, importers stayed away from bookings on Wednesday expecting prices to fall further in the coming days.


Though Turkish mills stayed away from markets, suppliers anticipate that they are likely to resume trades in October giving a boost to the prices. Offers for US and Australian origin HMS 1&2 (80:20) were at $280-285/mt levels, while bids were only as low at $275/mt for the same. Feng Hsin steel had kept prices flat on Monday from last week, however, lowered domestic scrap purchase prices by NT$300/mt ($10/mt) effective Sep 24.


Traders state muted trading in Turkey and declining prices in the finished steel markets amid Chinese pressure pulled prices down this week. They further added that finished steel demand is yet to improve in Taiwan with mills purchasing limited domestic scrap and avoiding imports. 


Offers for South American HMS 1&2 (80:20) were at $265-270/mt cfr with no trades being heard. Buyers may keep limited bookings this week due to bullish offers and weak domestic fundamentals.

Market is expected to slow down in Taiwan during the moon festival from Oct1-4 and national holidays from Oct 9-11. 


South Korea

The weekly Davis Index for containerized HMS 1&2 (80:20) settled at $278/mt cfr South Korea on Wednesday, down $3/mt. Import prices for other scrap grades also rose on increased offers in the imported market, while domestic scrap prices are expected to fall this week by KRW10,000/mt.


Korean steel mills are focusing on purchasing more domestic scrap due to its availability. Traders said all mid-size steel mills are staying away from imports as global ferrous scrap prices are rising, while demand has been sluggish for finished steel.

The weekly Davis Index for P&S 5ft, #1HMS, and shredded were down by $6/mt, $2/mt and $5/mt at $290/mt, $283/mt, and $286/mt cfr South Korea, respectively. Very limited offers were available in the market on Wednesday.  


The daily Davis Index for domestic Heavy A delivered Incheon and Pohang, Tuesday, dropped by KRW17,500/mt ($15/mt) to settle at KRW315,000/mt ($271/mt) and KRW310,000/mt delivered mills, respectively, with major steel mills like Hyundai, Donkuk and others buying at index prices. 


No deals were heard in the containers or the bulk market so far this week. Last week, a major steelmaker in South Korea bought Russian A3 bulk at lowered prices of $303/mt cfr South Korea, but on Wednesday, offers went below $300/mt cfr South Korea.  Japanese #2 HMS was offered at JPY27,500-28000/mt fob, but buyers refused these levels.  

South American suppliers offered HMS 1&2 (80:20) at $270/mt cfr, down by $5/mt from the prior week.  





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