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

A shortage of domestic scrap in Japan and a rise in global scrap prices prompted exporters to raise offers this week by JPY1,000-1,500/mt ($9-14/mt). Export deals were limited as bids lagged.


Tokyo steel raised bids effective March 3 with # 2 HMS prices at JPY41,500/mt delivered Tahara, JPY41,000/mt delivered Okayama, JPY40,500/mt delivered Kyushu, JPY41,500/mt delivered Utsunomiya and JPY39,500/mt delivered Takamatsu.


Traders raised offers for HS by $20-30/mt to $510-515/mt cfr China with bids at $480-500/mt cfr on Wednesday. Spot iron ore price for 62fe fell by $2/mt from the prior week to $176/mt cfr Qingdao on Monday due to pollution-related production restrictions but rose by $1.5/mt on Wednesday.


Few deals for Japanese HS heard at $490-495/mt cfr. South Korean HS in containers sold at $475/mt cfr China. The index for P&S 5ft (small bulk) China port settled at $494/mt cfr, up by $20/mt from the prior week.  


Exporters raised offers for #2 HMS to JPY43,000/mt fob, up by JPY1,000/mt from the week prior with the index rising by JPY1,750/mt to JPY41,500/mt fas. On a fob basis, the index rose by JPY1,250/mt to JPY42,500/mt($397.6/mt) fob with deals heard at JPY42,500/mt fob this week. Offers for #2 HMS were at $450-460/mt cfr.


Bids for Japanese #1 busheling (Shindachi) rose by JPY2,000/mt to JPY47,000/mt fob from a week ago. The weekly index for the grade rose by JPY1,563/mt to JPY47,313/mt fob Japan, while on a fas basis the index rose by JPY1,500/mt to JPY45,500/mt fas. With Turkish mills raising scrap purchase volumes as well as prices, the index for HMS 1&2 (80:20) increased by $48/mt to $457.5/mt on March 1 from Feb 1. Thus, many traders are expecting a further rise in global ferrous scrap prices next week due to the tight supply of scrap and a rise in steel demand globally.


The weekly Davis Index for HS and shredded, Wednesday, rose by JPY1,000/mt to JPY45,750/mt fas, respectively. Limited trades heard as most mills were cautious of rising offers.


Offers for HMS 1&2 (50:50) rose by $20/mt to $465/mt cfr Vietnam this week. After Tokyo steel increased domestic scrap bids, the index for the grade rose by $19/mt to $460/mt cfr Haiphong.


In Taiwan, the index for Japanese HMS 1&2 (50:50) rose by $22/mt to $455/mt cfr. Offers rose $25/mt to $460/mt cfr after few deals at $435/mt cfr heard last week.


Buyers from Vietnam, South Korea, and Taiwan are buying cautiously amid elevated offer levels and closely watching Chinese and Turkish buying to gauge the price direction.



Leave a Reply

Your email address will not be published.