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

South Korea

Prices of containerized imported ferrous scrap fell amid slow finished steel demand in South Korea. Construction projects in the country have slowed amid a steep rise in the price of raw materials such as steel and cement. Many mills have lowered bids in line with a decline in scrap and ore prices in other Asian countries. The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $418/mt cfr South Korea down $17/mt from the prior week. Bids were heard at $415/mt cfr.


The weekly Davis Indexes for P&S 5ft and #1 HMS, Wednesday, dropped by $15/mt to $443/mt and $20/mt to $423/mt cfr South Korea, respectively. The index for shredded fell by $15/mt to $438/mt from the prior week. Korean mills focused on bulk scrap over containerised amid a shortage of containers and vessel delays.    


A South Korean mill bought 50,000 mt Japanese #2 HMS at JPY42,000/mt fob ($404/mt) on Friday. Hyundai Steel reduced scrap purchase prices on Wednesday with bids for #2 HMS at JPY 39,500/MT fob, HMS 1&2 (50:50) at JPY40,000/MT fob, HS at JPY 44,000/MT fob, shredded at JPY44,000/MT fob and busheling at JPY45,000/MT fob.


Domestic scrap bids fell on Wednesday by KRW20,000/mt in line with lowering global scrap prices with domestic Heavy A at KRW420,000/mt and KRW430,000/mt ($390/mt) delivered Incheon and Pohang, respectively. 



The Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, fell by $5/mt from the prior day to $420/mt cfr Taiwan due to sluggish finished steel demand. Many mills resisted high offers and lowered bids to $430/mt cfr. Offers heard at $435-440/mt citing limited supplies. 


Amid limited volumes offered by US yards due to scrap and container shortages, Taiwanese mills are forced to negotiate with Japanese ferrous scrap suppliers, said traders. Many mills are delaying trades to gauge price direction after Hyundai revised bids on Wednesday.



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