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

Domestic ferrous scrap prices in most Asian markets dropped further this week amid limited demand, except in China. Japanese ferrous scrap prices are expected rise with Kansai and Kanto tenders for July fetching higher average bids. Bids were placed at higher than current market prices helping suppliers raise their offers.  



Japan’s domestic ferrous scrap prices remained flat. Tokyo Steel has kept its domestic scrap purchase prices unchanged from July 8 for all plants. The steelmaker froze its finished steel prices for August shipments after increasing them by upto 7.3pc ($46/mt) in July. Tokyo Steel has decided to wait for the market to absorb the previous hike, said sources.  


Traders are expecting finished steel demand in China to sustain and support an uptick of Japanese domestic scrap prices later this month.


In the Kansai tender concluded on Tuesday, 5,000mt of #2 HMS scrap sold at JPY23,110/mt fas Japan, which would translate to JPY24,110/mt fob Japan, up JPY2,000/mt than the current market indicating that Japanese scrap prices could rebound soon.  


Purchase prices for #2 HMS are at JPY21,500/mt ($200/mt) delivered Utsunomiya works in Kanto region, indicating Japanese scrap prices might have reached a short-term bottom. Bids for #2 HMS and busheling are at JPY23,500/mt and JPY25,000/mt delivered Kyushu and JPY23,000/mt and JPY24,000/mt delivered Okayama plant, respectively.  


South Korea  

South Korean domestic scrap prices dropped further amid high scrap inventories at the mills. Dongkuk, SeAH, YK, Daehan and Hyundai Steel lowered their domestic scrap purchase prices by KRW5,000-10,000/mt del plant for the fourth successive week.

The Davis Index for domestic Heavy A Tuesday fell by KRW10,000/mt to settle at KRW290,000/mt ($240.42/mt) del Incheon, while the index in Pohang settled at KRW275,000/mt delivered, down by KRW5,000/mt from the prior Tuesday.  

The weekly Davis Index for domestic Light A settled at KRW245,000/mt delivered Pohang plant, down by KRW10,000/mt. Offers for Japanese scrap in small bulk rose following higher bids recorded at Kansai and Kanto tenders.  



Domestic ferrous scrap prices in Taiwan remained flat to down this week. Domestic scrap, billet and rebar prices remained flat amid global uncertainty and seasonal factors affecting demand.  


The weekly Davis Index for domestic HMS 1&2 (80:20) in South Taiwan Tuesday settled at TWD6,650/mt ($226/mt) del plant flat from the prior week. The index for HMS 1&2 (80:20) in North Taiwan settled at TWD6,800/mt del plant, down TWD100/mt.  

Feng Hsin Steel kept domestic base HMS 1&2 (80:20) prices at TWD6,800/mt delivered Taichung plant. The steelmaker’s base offers for rebar and billet was flat at TWD13,800/mt and TWD12,300/mt ex-plant. A few mills offered discounts on listed prices to boost demand.  


In seaborne trades, US-origin containerised HMS 1&2 (80:20) traded at $225-230/mt cfr Taiwan.  



The Davis Index for HMS 1&2 (80:20) settled at VND5,800,000/mt ($250/mt) delivered South Vietnam inclusive of taxes, down by VND50,000/mt from the prior week. 



In China, Shagang Steel raised bids for domestic #2 HMS (6-10mm thickness) on Tuesday to CNY2,700/mt, up by CNY30/mt del Jiangsu plant inclusive of the 13pc VAT. The weekly Davis Index for domestic HMS 1&2 (80:20) settled at CNY2,700/mt ($385.96/mt) delivered to mill in eastern China, inclusive of 13pc VAT, up by CNY50/mt.  

Strong recovery in finished steel futures and iron ore import prices hitting $111/mt cfr China levels led to a sharp rise in steel prices despite heavy rains and floods in the northern region. 


In the domestic market, prices for billet rose by CNY70-100/mt from the last week to CNY3,400/mt ($486/mt) ex-Tangshan mill on Tuesday.  



The weekly Davis Index for domestic HMS 1&2 (80:20) settled at THB7,700/mt ($243.9/mt) delivered Rayong inclusive of taxes. Major steel makers stayed away from scrap bookings amid a weak steel demand scenario in the country.  



The weekly Davis Indexes for domestic HMS 1&2 (80:20) settled at MYR930/mt ($217.7/mt) delivered western mills, down by 

MYR10/mt and at MYR950/mt delivered eastern mills, inclusive of taxes.  


($1= JPY107.39; TWD29.49; CNY7.00; THB31.56; MYR4.27; VND23,183.5; KRW1,206.04)


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