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

South Korea

The weekly Davis Index for domestic Heavy A, Tuesday, rose by KRW37,500/mt ($33.42/mt) to KRW517,500/mt ($461.22/mt) delivered Incheon. While the weekly Davis index for domestic Heavy A, Tuesday, increased by KRW37,500/mt ($33.42/mt) to KRW525,000 ($467.90/mt) delivered Pohang. Major steelmakers bought domestic Heavy A scrap at KRW515,000-KRW530,000/mt delivered Incheon and Pohang mills. 


In the Pohang region, prices for domestic scrap rose by KRW37,500-KRW52500/mt delivered from the prior week. The weekly Davis Index for domestic Light A settled at KRW512,500/mt ($456.76/mt) delivered Pohang, up KRW52,500/mt. 


South Korean mills lowered bids for Japanese #2 HMS by JPY1,000-2,000/mt to JPY47,000-48,000/mt fob Japan on Tuesday. On Friday, Hyundai Steel bought limited volumes at JPY49,000/mt fob. Increased supply and reluctant buying are indicative of a further drop in the coming days, traders said.


Hyundai Steel booked 35,000mt of A3 scrap from Russia at $499/mt cfr South Korea. Prices registered a drop of $6/mt from the prior week’s trade. On May 18, Dongkuk Steel bought 12,000mt of A3 scrap at $505/mt cfr South Korea. 



The weekly Davis Index for the HMS (80:20) declined to CNY3720/mt delivered mill, down CNY430/mt. Shagang Steel has consecutively cut scrap purchase prices six times since May 16. The steelmakers’ buying prices was down CNY170/mt on May 24 at all works.  


On Tuesday, Chinese domestic billet prices rose to CNY4,940/mt ($771/mt) ex-Tangshan including VAT, up CNY20/mt from Monday. While billet prices have dropped by 14.4pc from the record high of CNY5,770/mt ex-works on May 12.


Spot iron ore prices for 62pc Fe marginally moved up $3.3/mt to $191.65/mt cfr China on Tuesday. Amid falling inventories and optimism on sustaining demand, prices are likely to stay firm. Spot steel prices continued to drop amid high inventories and a dip in steel futures on Monday.


China’s National Development and Reform Commission said that the country will strengthen price controls of key commodities in its 14th five-year plan from 2021-2025, allowing the industry to deal with fluctuations in the iron ore and copper prices. 



The weekly Davis Indexes for domestic HMS 1&2 (80:20) remain TWD12,900/mt and TWD12,700/mt delivered Northern and Southern mill, respectively.  


Taiwanese mills believe billet prices could rise in China’s domestic market. Offers for Southeast and East Asian billet reduced by $30 to $720/mt cfr China. 


Feng Hsin kept domestic scrap purchase prices stable while hiking rebar prices by NT300/mt from the prior week to TWD21,200-21,400/mt ex-works.


Indonesian billet offer to Taiwan fell by $35 to $730/mt on May 20.  



Japanese EAF steelmaker Tokyo Steel has kept its finished steel prices unchanged since last week’s revision. While bids for #2 HMS remain unchanged at JPY51,500/mt delivered Tahara works, JPY50,000/mt delivered Okayama and Kyushu, JPY48,000/mt delivered Utsunomiya, and JPY48,500/mt delivered Takamatsu. Scrap supply continues to be tight in Japan but demand has softened weigh down prices.



The weekly Davis Index for HMS 1&2 (80:20) in Vietnam remained unchanged at VND10,800,000/mt ($468.73/mt) delivered Southern mill. Mills, who were largely away from imported ferrous scrap trades last week, could resume bookings by paying $25-30/mt higher than prior deals, believe traders.


In the container market, offers for FEUs of HMS 1&2 (80:20) showed a marginal drop in the range of $475-480/mt cfr Vietnam. Vietnamese EAF makers have decided to stay away from ferrous scrap purchases on weak demand.



The weekly Davis index for domestic HMS 1&2 (80:20) is stuck at THB14,225/mt delivered Rayong mill. Thai mills focused on domestic scrap purchases amid increasing COVID-19 cases. The gap between domestic and imported scrap has widened after offers for HMS 1&2 (80:20) heard at $450-46/mt cfr Thailand. 



The weekly Davis Index for HMS 1&2 (80:20) stays at MYR1,905/mt delivered eastern mill and MYR1,875/mt delivered western mill. Malaysia is under a tight lockdown.


Malaysia’s automobile sales volume in April fell by 12.3pc from March, according to a release by the Malaysian Automotive Association. 


($1= JPY108.92; TWD27.85; CNY6.41; THB31.37; MYR4.14; VND23049.18; KRW1122.12)

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