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


The weekly index for #2 HMS, Wednesday, increased by JPY2,000/mt to JPY49,500/mt ($452.54/mt) fob Japan and rose JPY1,500/mt to JPY48,500/mt ($443.39) fas Japan.


The weekly index for P&S 5ft (small bulk) China port settled at $550/mt cfr, down by $10/mt. The buyer raised bids to $540-545/mt cfr China on Wednesday. In the Chinese market, domestic scrap fell by CNY80/mt to CNY4,940/mt ex-Tangshan amid a fall in billet prices. Lower iron ore imports into China in May indicating a slow down in steel production have also dampened sentiment.  


In the small bulk market, Japanese #1 busheling (Shindachi) offers were above JPY58,000/mt fob. The weekly index for the grade jumped by JPY3,000/mt to JPY57,000/mt fob Japan and JPY56,000/mt fas Japan. 


The weekly Davis Indexes for shredded and HS, Wednesday, climbed by JPY3,500/mt to JPY52,500/mt and increased by JPY2,000 to JPY55,000/mt fas Japan, respectively. 


Offers for Japanese HMS 1&2 (50:50) at $485-505/mt cfr Vietnam, with the index for the grade settling at $477/mt cfr Haiphong, up by $7/mt. 


The index for Japanese HMS 1&2 (50:50), Wednesday, increased by $22/mt to $465/mt cfr Taiwan. Most offers fell to $475-480/mt cfr Taiwan from last week. 


Japan’s monthly Kanto Tetsugen scrap tender, Wednesday, concluded JPY345/mt ($3.15) higher than last month’s average of JPY48,830/mt fas. The only winning bid was from Nittetsu Busan for 7,500mt #2 HMS at JPY49,195/mt ($449.5) fas Tokyo Bay. 


The low auction volume of 7,500mt against the usual levels of 20,000mt indicates limited interest at higher prices and supply tightness. Average prices in Japan neared the record highs of JPY50,000/mt fas levels last seen in August 2008 tender. Average bids had shot up to JPY50,650/mt in August 2008 and as high as JPY67,750/mt in July 2008. On a fob basis, average winning bids in June’s tender are near the JPY50,000/mt mark for #2 HMS. 


The results of the Kanto tender indicate a gap of over JPY4,000/mt in the current export price expectations against steelmaker Hyundai’s bids at JPY46,000/mt fob Japan as of June 3. Steel mills in South Korea and Vietnam are expected to hike their bids for Japanese scrap on fob terms this week, market participants said.


Following a rise in Kanto bids, Tokyo steel could revise prices upward which have remained stable since May 19.


Japanese finished steel prices remained elevated on the strong demand outlook despite slow economic recovery. There is still uncertainty about the conduct of the Olympic Games, which are scheduled to start on July 23, and Paralympics from August 24, without foreign spectators.


South Korea

The weekly Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $438/mt cfr South Korea, up $5/mt. But mills were reluctant to accept prices above $445-450/mt cfr South Korea despite improvement in domestic demand.   


The weekly Davis index for P&S 5ft, Wednesday, rose $5/mt to $463/mt cfr South Korea, while the index for #1 HMS and shredded climbed up $5/mt to $448/mt, and $455/mt cfr South Korea, respectively.  


Offers for #2 HMS increased by JPY1,500/mt to JPY48,500/mt fas from the prior week.    



The weekly Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, settled at $444/mt cfr Taiwan, down by $6/mt. On Wednesday, most offers at $455-450/mt cfr Taiwan. The weekly Davis index for HMS 1&2 (50:50) is $465/mt cfr Taiwan, up $22/mt. 


Offers for HMS (90:20) from the US in container heard at $445/mt. 


Freight rates and global steel demand continue to remain firm. 


($1=JPY109.7, TWD27.77, KRW1115.37)

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