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

Asian domestic ferrous scrap prices were mixed as most markets remained under lockdown due to rising COVID-19 cases. 


Taiwan’s domestic ferrous scrap prices fell marginally as demand in the country slowed. Yards, though, held on to their prices and a few even withdrew offers in expectations of a rise in imported scrap prices in the coming days. 


The weekly Davis Index for domestic HMS 1&2 (80:20) in south Taiwan settled at NT$6,100/mt ($203/mt) del plant, down by NT$50/mt. The weekly index for HMS 1&2 (80:20) in north Taiwan settled at NT$6,300/mt del plant, down by NT$50/mt.


In South Taiwan, Feng Hsin Steel kept its domestic scrap purchase prices unchanged for domestic HMS 1&2 (80:20) at NT$6,100/mt delivered Taichung plant. Feng Hsin’s base offers for rebar are at NT$13,400-13,500/mt ex-producer. Other mills offered rebar grade 40 at NT$13,200-13,300/mt ex-producer after discounts, down by NT$500/mt from the prior week. 


In seaborne trades, US-origin containerized HMS 1&2 (80:20) traded in the range $200-205/mt cfr Taiwan late last week, flat from March end. With an uptick in global ferrous scrap prices, US suppliers hope to raise offers in the near term.  



Japan’s domestic scrap prices have remained flat since March 28. Export prices, however, were on a downtrend. Tokyo Steel held its bids for #2 HMS at JPY17,500/mt ($160/mt) del Kyushu plant. Purchase prices for #2 HMS del Utsunomiya, Tahara, Okayama and Takamatsu were at JPY19,000/mt, JPY20,000/mt, JPY18,500/mt and JPY17,500/mt, respectively. Bids for busheling were at JPY22,000/mt del Tahara and JPY21,000/mt del Utsunomiya plants.


South Korea

Rising inventories and a drop in finished steel demand in export markets forced mills to cut domestic purchase prices for ferrous domestic scrap by another KRW10,000/mt this week. Effective April 7, Dongkuk Steel cut prices scrapby KRW10,000-15,000/mt delivered to its Pohang plant. Other steelmakers like Korean Steel and YK steel lowered prices by KRW10,000/mt this week. Trades were limited.


The weekly Davis Index for domestic Heavy A settled Tuesday at KRW250,000/mt ($206/mt) del Incheon, down by KRW2500/mt. The Davis Index for Heavy A settled at KRW240,000/mt del Pohang, also down by KRW2,500/mt from the prior Tuesday. The weekly Davis Index for domestic Light A settled at KRW225,000/mt delivered Pohang plant, down by KRW2,500/mt.



The weekly Davis Index for HMS 1&2 (80:20) settled at VND5,200,000/mt ($220/mt) delivered South Vietnam inclusive of taxes, down by VND100,000/mt for a third successive weekA fall in imported scrap prices and the impact of COVID-19 lockdown on transport hampered trades.


Vietnam markets were faring better till March end compared to other Southeast Asian markets. From April, however, activity in Vietnamese markets slowed pressured by a fall in HRC prices by over $50-60/mt in the span of 10 days, driven by the COVID-19 lockdown in India. Vietnam is a major supplier of HRC to Asian markets.



The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,525/mt ($358/mt) inclusive of 13pc vat delivered to mill in eastern China. Chinese steelmakers are looking to save their input costs amid falling finished steel prices in the domestic and export markets. A few mills opted to cut their purchase prices for ferrous scrap. Shagang Steel headquartered in Zhangjiagang, East China’s Jiangsu province, lowered prices by CNY200/mt this week. Effective April 7, prices for #2 HMS are at CNY2,330/mt del Jiangsu plant, down by CNY130/mt from April 4 and down by CNY200/mt from the prior week’s prices, inclusive of the 13pc VAT as per a Davis Index source.


Thailand’s domestic scrap prices fell by over $40/mt in the last two weeks due to weak global cues and subdued domestic steel demand. Thailand also continues to be under lockdown like many other countries in the world. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7250/mt ($221/mt) ) delivered Rayong inclusive of taxes, down by THB300/mt ($9/mt).



In absence of any trades and a complete suspension of mining and production related activities, Malaysian ferrous scrap prices dropped further. At present there are no bids against offers in the market. The weekly Davis Index for domestic HMS 1&2 (80:20) delivered western mills settled at MYR838/mt ($193/mt), unchanged from the prior week. The index for HMS 1&2 (80:20) delivered eastern mills settled at MYR915/mt, inclusive of taxes, down by MYR10/mt from the prior week.


Market update


South east Asian billet prices dropped another $10/mt from the prior week. Trades concluded at $360-365/mt cfr South East Asia. The fall in billet prices dampened market sentiment. Not many buyers in Philippines were not interested in bidding amid lockdown, but thin trades were reported at $370-375/mt cfr Manila, down by $10/mt from the prior week.


($1= TWD30.03; CNY7.05; THB32.74; MYR4.34; VND23,632.5; KRW1,210.5)

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