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

Imported ferrous scrap offers in East Asian markets are bullish amid strong demand and tight supply. 


Steel inventories in China hit a three month’s low and steel futures continued to recovery pushing for iron ore ferrous content 62pc above $212/mt cfr China on Thursday. Domestic billet rose by CNY20/mt from Wednesday to CNY4,980/mt ex-Tangshan inclusive of 13pc VAT. 


South Korea 

South Korea’s Hyundai Steel revised bids for Japanese small bulk cargoes by JPY1,000/mt ($9.13/mt) following the Kanto tender on Wednesday. Also, firm domestic demand from Japanese mini-mills pressurized the steelmaker to raise bids. 


Revised bids for #2 HMS are at JPY47,000/mt ($429.29/mt) fob Japan, H1:H2 at JPY47,500/mt fob, shredded at JPY51,000/mt fob, P&S (HS) at JPY52,000/mt fob and busheling (shindachi) at JPY53,000/mt fob Japan, up by JPY1,000/mt.


One deep-sea cargo from the US West Coast heard at $515/mt cfr Korea.  



Domestic scrap prices are slowly picking up, though not many deals were heard.  


The Davis Index for containerized #1 HMS Thursday jumped up by $7/mt from the prior week to $453/mt cfr Taiwan whereas the index for shredded rose $6/mt to $466/mt cfr Taiwan on Thursday. 


The indexes for P&S 5ft and #1 bushelling rose by $3/mt and $5/mt to $473/mt and $481/mt cfr Taiwan, respectively, on Thursday. 


The index for HMS 1&2 (80:20) is at $446/mt cfr Taiwan port, up by $2mt. 



The Davis index for containerized #1 HMS, Thursday, reached $463/mt cfr Vietnam, up by $1/mt from the prior week. On a weekly basis, shredded, P&S 5ft, and #1 bushelling indexes rose to $476/mt, $483/mt, and $491/mt, up by $6/mt, $2/mt and $5/mt respectively. 


Offers for US-origin HMS 1&2 (80:20) dipped to $450-455/mt cfr Vietnam on weak demand that has continued since the last three weeks. Mills are refusing high offers and some are on the lookout for a significant drop in prices.  



The Davis index for P&S 5ft is stable at $510/mt cfr Jakarta Indonesian port. Bid for P&S 5ft heard at $500/mt.


The Davis Index for shredded, #1 busheling stable at $505/mt and $520/mt cfr Indonesia port, respectively. Trades for HMS 1&2 (80:20) in containers heard at $490/mt cfr Indonesia. 



Tokyo Steel has kept its ferrous scrap purchase bids unchanged since May 18. The bids for #2 HMS at JYP51,500/mt delivered Tahara works, JYP50,000/mt delivered Okayama, JPY50,000 delivered Kyushu, JPY48,000/mt delivered Utsunomiya, and JPY48,500/mt delivered Takamatsu. 


($1= JPY104.68, TWD27.67, VND22,999.77, IDR14,268.65)

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