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

Domestic ferrous scrap prices in Southeast Asia increased taking a cue from higher Japanese scrap prices. The price increase is driven by supply tightness whilst demand remains soft. 



The weekly Davis Index for HMS 1 & 2 (80:20) settled unchanged at CNY3,750/mt ($579.96/mt) del mill on Tuesday.  


Domestic billet prices are at CNY4,930 ($762.45/mt) ex-Tangshan, including VAT, up by CNY70/mt from a week ago. 


On Tuesday, Chinese steel futures rose as raw material prices moved up despite easing steel supplies and muted demand in China.  


Iron ore prices touched $221/mt cfr North China for 62pc Fe content on Tuesday. 


South Korea

The weekly Davis Index for domestic Heavy A rose KRW5,000/mt ($4.41/mt) to KRW540,000/mt ($476.21/mt) del Incheon and KRW545,000/mt ($480.62/mt) del Pohang.    


The weekly Davis Index for domestic Light A was flat at KRW510,000/mt ($449.76/mt) del Pohang. In the domestic market, scrap prices rose due to limited supply. 



The weekly Davis Indexes for domestic HMS 1&2 (80:20) rose by TWD300/mt ($10.73/mt) to TWD12,600/mt ($450.75/mt) and TWD12,400/mt ($443.59/mt) del Northern and Southern mill, respectively.  


Feng Hsin Steel raised scrap purchase bids by TWD300/mt and the rebar prices by TWD200/mt, while it kept its section steel prices flat at TWD27,000/mt ex-works. 



Tokyo Steel kept its ferrous scrap purchase prices unchanged on Tuesday. Bids for #2 HMS remain at JPY51,000/mt ($460.22/mt) del Okayama, JPY49,000/mt ($442.18/mt) del Utsunomiya, and JPY49,500/mt ($446.69/mt) at Takamatsu. 


The Japanese scrap market is witnessing a game of tug-of-war between heavy scrap and premium scrap with mills buying HMS, mostly to keep costs lower and maintain profit margins. The gap between the two is steadily increasing. 



The weekly Davis Index for HMS 1&2 (80:20) in Vietnam rose VND125,000/mt ($5.43/mt) to VND10,625,000/mt ($461.89/mt) delivered Southern mill.


Japanese offer for H2 grade heard at $520/mt cfr Vietnam. 


Meanwhile, construction steel prices in Vietnam dropped lower than VND17mn/mt.  



The weekly Davis index for domestic HMS 1&2 (80:20) fell by THB200/mt ($6437/mt) to THB13,600/mt ($422.54/mt) del Rayong mill. Thai mills continued to stay silent amid COVID-19 restrictions. 


Thailand billet offers at $660/mt cfr China. 



The weekly Davis Index for HMS 1&2 (80:20) fell by MYR20/mt ($4.81/mt) to MYR1,760/mt ($423.54/mt) del eastern mill and MYR1,730/mt ($416.32/mt) del western mill.


Malaysia continues to be under a strict lockdown.   


($1= JPY110.70; TWD27.92; CNY6.47; THB32.19; MYR4.16; VND23003.37; KRW1,133.94)

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