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

Domestic ferrous scrap prices in most Asian markets were mostly flat as they await the result of Kanto tender to be held on Wednesday, Sep 9.  



Tokyo Steel kept domestic scrap bids unchanged from the prior week for deliveries to all five of its works. Bids for busheling were at JPY27,000/mt ($254/mt) del Tahara plant and JPY26,500/mt del Utsunomiya plant. Bids for #2 HMS and busheling are at JPY25,000/mt and JPY26,500/mt delivered Kyushu and JPY24,000/mt and JPY25,000/mt delivered Okayama mill, respectively.


In the Kanto region, #2 HMS was offered at JPY27,000-27,050/mt fas port while offers for HS and shindachi were at JPY29,000-30,000/mt and JPY28,500-29,500/mt fas Japan, up by JPY500/mt from the prior week.


The ongoing typhoon season in Japan is expected to limit ferrous ferrous scrap supplies. Japanese scrap exporters are waiting for Kanto results. They expect prices to rise further amid shortage of domestic scrap.


South Korea 

Mills reduced their bids for domestic scrap from the prior week. Buyers also opted for Russian A3 scrap due to a shortage of domestic scrap and an increase in Japanese and US scrap offers. Offers for #2 HMS were heard at JPY28,500-29,000/mt fob and for Japanese HS were at JPY32,000/mt.


The Davis Index for domestic Heavy A delivered Incheon and Pohang, Tuesday, fell by KRW10,000/mt ($8.4/mt) to settle at KRW325,800/mt ($274/mt) and KRW320,000, respectively, with deals heard at the index price. The weekly Davis Index for domestic Light A fell by KRW10,000/mt to settle at KRW290,000/mt delivered Pohang mill. Limited trades for the grade were reported at the index price as mills focused on buying specific grades. Steel manufacturers in Korea also await Kanto bids to assess the market.



Rebar and billet prices remained unchanged in Taiwan for the second week with Feng Hsin Steel holding prices. The steelmaker also kept its domestic scrap bids unchanged. Following Feng Hsin’s footsteps, other mills also kept their bids unchanged. Feng Hsin’s base offers for rebar and billets were flat at NT$14,500/mt and NT$13,000/mt ex-works, respectively. 


The weekly Davis Index for domestic HMS 1&2 (80:20) in South and North Taiwan was flat at NT$8,200/mt ($280/mt) and NT$8,400/mt delivered mill, respectively on Tuesday. 


In seaborne markets, US-origin containerized HMS 1&2 (80:20) offers rose to $275-280/mt cfr Taiwan with deals heard at $275/mt cfr on Tuesday. The daily index for containerized US-origin HMS 1&2 (80:20) settled up by $4/mt to $274/mt cfr Taiwan. Market participants are expecting trades at $280/mt cfr this week, on continued buying from Turkey.


Bids for South American scrap were at $255-260/mt cfrImporters are expecting Kanto bids to push prices further up this week.

Japanese bulk offers for HMS 1&2 (50:50) were at $290/mt cfr. These price remain unviable for most Taiwanese mills who are counting on steel demand from new infrastructural projects in October.



The weekly Davis Index for HMS 1&2 (80:20) rose by VND16,667/mt to VND6,850,000/mt ($297/mt) delivered South Vietnam, inclusive of taxes. Offers rose to VND7,000,000/mt, while few trades were also heard at VND6,800,000-6,900,000/mt.

Demand for ferrous scrap in Vietnam is yet to improve but a shortage of domestic scrap has kept offer for imported scrap high. 


Few traders are expecting finished steel prices to rise in the next few days, while Vietnam’s HRC imports have increased in the last few months. A deal for 20,000mt HRC was heard at $530/mt cfr Vietnam this week. Market participants are expecting further increase in imports of HRC from India and China, with automakers increasing production.


An increase in Japanese scrap prices last week have driven Vietnamese buyers to wait for the Kanto tender before making any further bookings. Bids for #2 HMS were at $308/mt cfr.


Vietnamese billet suppliers focused on exports with firm offers for October and November shipments. Offers for billets are at $440-445/mt cfr China against bids of $435/mt cfr China.



In China, Shagang Steel bought domestic #2 HMS (6-10mm thickness) at a 13-month high of CNY2,830/mt ($413/mt) del Jiangsu mill, inclusive of 13pc VAT. The weekly Davis Index for the grade settled at same, delivered mill, up by CNY30/mt. The steelmaker raised rebar prices by CNY30/mt this week to cover bullish raw material prices. Prices for billets in the domestic market were at CNY3,500/mt ex-Tangshan mill on Tuesday.



The weekly Davis Index for domestic HMS 1&2 (80:20) was flat at THB9,800/mt ($312/mt) delivered Rayong mill inclusive of taxes, with trades at the index price. Most mills preferred domestic material over imports amid rising offer prices from suppliers. In seaborne markets, no trades were heard for US-origin containerized HMS 1&2 (80:20), while offers were at $270-275/mt cfr Thailand. 



The weekly indexes for HMS 1&2 (80:20) remained flat at MYR1,040/mt ($249/mt) delivered western mills and up MYR5/mt to MYR1,100/mt delivered eastern mills inclusive of taxes. Limited trades were heard at the index price. Market participants are expecting demand for finished steel to pick up in mid-September and October when the government-funded infrastructure projects are expected to gain momentum.


($1= JPY106; NT$29; CNY6.8; THB31; MYR4.2; VND23,032; KRW1,189)


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