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


The weekly index for #2 HMS, Wednesday, rose JPY250/mt to JPY45,000/mt ($410/mt) fob Japan. On a fas basis, the index for the grade rose JPY500/mt ($4.6/mt) to JPY44,250/mt ($404/mt) fas Japan. Major South Korean mills stayed away from bidding for Japanese scrap.

Tokyo steel has kept ferrous scrap purchase bids unchanged since April 21. But scrap prices rose with Asian importers competing for a limited volume of Japanese scrap.


Firm HRC and billet offer prices increased profit margin for Japanese EAF makers. But amid a shortage of scrap and the resulting rise in prices, mills are worried about margins narrowing. 


Increased inquiries from China and other Asian countries could lift asking prices further. The index for P&S 5ft (small bulk) China port settled at $510/mt cfr, up by $4/mt from the prior week on a rise in offers. Negotiations for small bulk cargoes of P&S were heard at $510-515/mt cfr China on Wednesday. 


Before the holidays, in the small bulk market Japanese #1 busheling (Shindachi) offers were above JPY50,500-51,000/mt fob due to a shortage of scrap and strong global cues. The weekly index for the grade rose JPY500/mt to JPY50,250/mt fob Japan. On a fas basis, the index rose JPY750/mt to JPY48,750/mt fas. The weekly Davis Indexes for shredded and HS, Wednesday, rose by JPY500/mt to JPY48,250/mt and JPY48,500/mt fas Japan, respectively amid limited trades.


Offers for Japanese HMS 1&2 (50:50) were at $480/mt cfr Vietnam from the prior week with the index for the grade settling at $478/mt cfr Haiphong, up by $3/mt on limited availability and elevated small bulk freights.

The index for Japanese HMS 1&2 (50:50) rose $2/mt to $465/mt cfr Taiwan. Most offers were unchanged from last week at $465-470/mt cfr against bids $455-460/mt cfr Taiwan. The disparity between bids and expectations kept the market silent. 


South Korea 

The Davis Index for containerized HMS 1&2 (80:20), Wednesday, settled at $428/mt cfr South Korea, down by $2/mt from the prior week. Mills refused to accept prices above $430-432/mt cfr South Korea levels for containerized HMS 1&2 (80:20) amid ample availability of domestic scrap.


The Davis index for P&S 5ft, Wednesday, fell $2/mt to $453/mt cfr South Korea from the prior Wednesday, while the index for #1 HMS and shredded decreased by $1/mt to $436/mt and $445/mt cfr South Korea, respectively. Trades for medium and low-grade scrap in containers remained paused as most buyers bought only premium grades from the overseas markets. South Korean mills remained away from bulk purchases from Russia, Japan, and the US west coast this week. 


Offers for #2 HMS rose JPY500-1,000/mt to JPY44,500-45,000/mt fas from week prior. 



Imported ferrous scrap offers jumped in Taiwan following the recovery in Turkish bulk prices. High freight rates and increased steel demand also lifted prices. The Davis Index for containerized US-origin HMS 1&2 (80:20), Wednesday, settled at $429/mt cfr Taiwan, up by $1/mt from Tuesday. From the prior Wednesday, prices dropped $4/mt amid limited interest showed by mills, which kept bids at $420-425/mt cfr Taiwan. On Wednesday, most offers trended sideways in the range of $435-440/mt cfr Taiwan. 


With a rise in Taiwanese prices, South Korean mills decided to stay away from booking imported containers. In the coming days, appetite for ferrous scrap imports is expected to rise with a sharp rise in iron ore, HRC, rebar, and billet prices in almost all Asian countries, including China. 


($1=JPY108.9, TWD27.9, KRW1111)



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