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

Asian domestic ferrous scrap prices rose in most markets from the week prior driven by an increase in global scrap prices and limited availability of ferrous scrap in domestic markets.



Ferrous scrap suppliers in the northern region increased prices this week. In the southern region though, domestic scrap prices remained flat with steel demand yet to pick up. Imported scrap supply remained tight giving its prices a lift from last week. 


The weekly Davis Index for domestic HMS 1&2 (80:20) in south Taiwan inched up by NT$50/mt and settled at NT$6,800/mt ($228/mt) del plant from the prior week, mainly due to a rise in imported scrap. The weekly index for HMS 1&2 (80:20) in North Taiwan settled at NT$7,150/mt del plant, up by NT$100/mt from the prior week.

In South Taiwan, Feng Hsin Steel held domestic ferrous scrap for HMS 1&2 (80:20) flat at NT$6,600/mt delivered Taichung plant. The steelmaker’s rebar base offers also remained unchanged at NT$13,700-13,800/mt ex-producer. In seaborne trades, US-origin containerised HMS 1&2 (80:20) traded in the range $225-227/mt cfr Taiwan, up by $3-5/mt from late last week. 



 Japan’s domestic ferrous scrap prices remained flat. The increase in average bids for Kanto Tetsugen tender, however, hints at a rise in domestic scrap prices in the coming days. The monthly scrap export tender, Kanto Tetsugen concluded on Tuesday with average bids up by JPY1,820/mt ($17/mt) from the prior month. The tender sold a total of 23,000mt ferrous scrap, with average winning bids at JPY22,476/mt ($209/mt) fas Tokyo Bay from JPY20,656/mt ($192/mt) fas Tokyo Bay in April.

Tokyo Steel held prices unchanged at Tahara, Okayama and Takamatsu steel centre effective April 28. Bids for #2 HMS remained unchanged at JPY18,500/mt delivered Utsunomiya in Kanto region and JPY17,500/mt delivered Kyushu plant. Bids for busheling scrap at Tahara and Utsunomiya also remained flat at JPY20,500/mt fob Japan.


South Korea 

 South Korean domestic ferrous scrap prices rose sharply from the prior week ending a three-week downtrend. A rise in global ferrous scrap drove domestic prices higher this week. Some mills including Posco, have lowered production and suspended ferrous scrap purchases. Others are expected to return to the market this week amid falling inventories.

The weekly Davis Index for domestic Heavy A settled at KRW280,000/mt ($229/mt) del Incheon, up by KRW15,000/mt. The Davis Index for Heavy A settled at KRW270,000/mt del Pohang, also up by KRW20,000/mt from the prior Tuesday. The weekly Davis Index for domestic Light A settled at KRW240,000/mt delivered Pohang plant, up by KRW15,000/mt. 



 The weekly Davis Index for HMS 1&2 (80:20) settled at VND5,800,000/mt ($249/mt) delivered South Vietnam inclusive of taxes, up by VND100,000/mt from the prior Tuesday. A rise in domestic scrap prices was fuelled by an increase in imported ferrous scrap offers and HRC prices in the export markets.



 The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,550/mt ($360/mt) inclusive of 13pc vat delivered to mill in eastern China, up by CNY200/mt from the prior week. Shagang Steel headquartered in Zhangjiagang, east China’s Jiangsu province, increased bids for domestic #2 HMS (6-10mm thickness) by CNY80/mt on Tuesday to CNY2,520/mt del Jiangsu plant inclusive of the 13pc VAT. Ferrous scrap prices in China rose on the back of supply crunch. 


Thailand’s domestic scrap prices remained flat. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7,700/mt ($237/mt) delivered Rayong inclusive of taxes. Imported HMS 1&2 (80:20) from Central America traded at $205-210/mt cfr Thailand.



The weekly Davis Index for domestic HMS 1&2 (80:20), settled at MYR895/mt ($207/mt) delivered western mills, up by MYR25/mt and the index for HMS 1&2 (80:20) delivered eastern mills settled at MYR925/mt inclusive of taxes, up by $5/mt from the prior week.


($1= JPY107.37; TWD29.87; CNY7.08; THB32.1; MYR4.33; VND23,335.51; KRW1,222.6)

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