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

Export offers from Japan dropped amid successive lowering of domestic ferrous scrap bids by Tokyo Steel. Most suppliers are waiting for firm bids from Hyundai and Dongkuk. The weekly index for #2 HMS fell by JPY1,250/mt to JPY39,750/mt fob amid lower bids from the South Korean mills. On a fas basis, the index fell by JPY1,250/mt to JPY37,750/mt ($347.1/mt) fas.


Effective March 23, Tokyo steel reduced ferrous scrap price for the fifth time in March. The steelmaker lowers ferrous scrap bids by JPY500/mt ($4.6/mt) delivered Tahara and Utsunomiya mill, while bids at the other three works remain unchanged. Revised bids for domestic #2 HMS at JPY41,000/mt ($377/mt) delivered Tahara, JPY40,500/mt delivered Okayama, JPY41,000/mt delivered Kyushu, JPY40,500/mt delivered Utsunomiya and JPY39,500/mt delivered Takamatsu.


The index for P&S 5ft (small bulk) China port settled at $480/mt cfr, down by $3/mt from the prior week. Most Chinese mills have lowered buying inquires for ferrous scrap in small bulk and bulk cargoes seeking lower prices. In containers, few deals continued on a trial basis. Offers for HS or P&S remained stable at $485-490/mt cfr China while bids were at $470-480/mt cfr on Wednesday.


Prices of 62pc Fe iron ore rebounded above $162/mt on Wednesday on recovering demand. Ore prices recovered in the last two days after falling to $157/mt cfr Qingdao on Monday, down $6/mt from the prior week amid pollution-related production restrictions in Tangshan.


Bids for Japanese #1 busheling (Shindachi) fell by over JPY2,000/mt due to limited demand from importing countries and domestic steel mills. Freight charges have remained high resulting in costlier imports for overseas buyers. The weekly index for the grade fell by JPY1,750/mt to JPY44,000/mt fob Japan, while on a fas basis the index fell by JPY1,250/mt to JPY43,000/mt fas.


With Turkish mills holding back purchases, bids for HMS 1&2 (80:20) remained below $420/mt cfr, down $10-15/mt from a week prior. Improved supplies kept bulk offers at lower prices despite high freight rates and shipping issues.


The weekly Davis indices for HS and shredded, Wednesday settled at JPY43,250/mt and JPY42,500/mt fas Japan, down JPY750/mt and JPY1500/mt respectively. Limited trades heard as most mills adopted a wait and watch strategy on falling global scrap prices.

Offers for HMS 1&2 (50:50) rebound on Wednesday in the range $435-445/mt cfr Vietnam with the index for the grade settling at $436/mt cfr Haiphong, marginally down by $2/mt despite a sharp drop in domestic prices in Japan.


A Vietnamese mill booked 5,000mt of #2 HMS in the range $440-445/mt cfr Vietnam, surprisingly higher than expected on Wednesday, said sources to Davis Index.


Suppliers negotiated high cfr offers with Taiwanese importers. The index for Japanese HMS 1&2 (50:50) fell by $4/mt to $424/mt cfr Taiwan. Trades heard at $415-425/mt cfr Taiwan early in the week. On Wednesday, traders indicated signs of the prices nearing the bottom emerged amid rising Chinese steel and iron ore futures. Most offers were at $425-430/mt cfr Taiwan and $440-445/mt cfr Vietnam.



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