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

Containerized imported ferrous scrap prices in East Asian markets like Taiwan and South Korea declined this week. Mills opted for domestic scrap which dropped by $10/mt in Taiwan and South Korea, pulling bids down for imported scrap. Supply, however, remains scarce. 



The daily index for US-origin containerized HMS 1&2 (80:20) settled unchanged at $273/mt cfr Taiwan on Wednesday. Importers expect ferrous scrap offers to fall in the coming days as prices for Japan and US-origin bulk were under pressure this week. 

Though Turkish mills are presently away from the market, suppliers believe bookings could resume in October and lift prices. Offers for the US and Australia-origin HMS 1&2 (80:20) were at $275/mt cfr, while bids were not above $270/mt cfr. Finished steel sales are still sluggish in the country and thus mills resorted to buying domestic scrap on a need basis. 


Offers for South American HMS 1&2 (80:20) were at $265/mt cfr with no trades heard at those levels. Trading may remain thin for the next few days due to the Moon festival from Oct 1-4 and national holidays from Oct 9-11. 


South Korea

The weekly Davis Index for containerized HMS 1&2 (80:20) settled at $270/mt cfr South Korea, Wednesday, down $8/mt. Import prices for other grades also declined as mills reduced bids on the back of sluggish finished steel demand. ‘Chuseok’ or the Korean Thanksgiving holidays till Oct 2 may keep trades limited as mid-sized mills could shut their EAFs. Domestic scrap prices fell this week by KRW10,000/mt ($8.5/mt) del mill.


Hyundai Steel has refrained from bidding for Japanese scrap in anticipation of further reduction in prices.

The weekly Davis Index for P&S 5ft, #1HMS, and shredded fell by $7/mt, $9/mt, and $3/mt to $283/mt, $274/mt, and $283/mt cfr South Korea, respectively. There were very few sellers in the market. 


The Davis Index for domestic Heavy A delivered Incheon and Pohang on Tuesday settled flat at KRW315,000/mt ($270/mt) and KRW305,000/mt delivered mills, respectively, with major steel mills like Hyundai, Dongkuk, and others buying at the index prices. 

Japanese #2 HMS was offered at JPY27,500/mt fob, but buyers stayed away from these levels.

South American suppliers offered HMS 1&2 (80:20) at $265/mt cfr, down by $5/mt from the prior week. 




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