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

Japanese ferrous scrap export prices rose by JPY1,000-1,500/mt this week. An increase in average winning bids at the monthly Kanto export tender could push offers further up this week.  

In the domestic market,  Tokyo steel increased prices for deliveries of all ferrous scrap graded to its Tahara plant by JPY500/mt on Wednesday. Bids for scrap delivered to the other four plants, however, have been kept unchanged.


In the Tahara region, the daily Davis Index for shredded settled at JPY27,500/mt del plant, #2 HMS at JPY26,000/mt del plant, #1HMS at JPY27,700/mt, and #1 busheling at JPY29,000/mt del plant, all up by JPY500/mt.


In the export market, bids at the Kanto were JPY2,154/mt higher compared to last month at JPY29,370 fas for 10,000mt of #2 HMS. Despite export prices rising by JPY500-1,000/mt this week, price levels are yet to reach the average of winning bids at the Kanto tender.


Deals for #2HMS were heard at JPY28,500-29,500/mt ($268-278/mt) fob or JPY27,500-28,500/mt on fas basis.

The index for #2 HMS and #1HMS increased by JPY1,250/mt and JPY1,500/mt to JPY28,000/mt and JPY29250/mt fas Japan, respectively. On a fob basis, the indexes for #2 HMS and #1HMS both rose by JPY1,500/mt to JPY29,000/mt and JPY30,250/mt, respectively.


With a rise in Japanese ferrous scrap export prices, most mills in South Korea preferred domestic scrap. On Tuesday, domestic ferrous scrap prices in South Korea fell by KRW10,000/mt del mill. No deals were heard as most importers were waiting for a price direction from the Kanto tender.


The weekly Davis Index for #1 busheling (Shindachi) rose by JPY1,375/mt to JPY30,125/mt fas Japan, while its fob price rose by JPY125/mt from the prior week to JPY31,125/mt fob Japan. The index for HS rose by JPY1,000/mt to JPY29,750/mt fas Japan.

Yards offered Japanese HMS 1&2 (50:50) at $290/mt cfr Taiwan early this week, with no trades heard. The weekly index for the grade increased by $1/mt to $288/mt cfr with bids at $285/mt.


The index for HMS 1&2 (50:50) rose by $1/mt to at $293/mt cfr Vietnam, with no trades heard. Bids for Japanese #2HMS were at $308-310/mt cfr Vietnam.


Major mills who had shut blast furnaces in keeping with sluggish demand in Japan are expected to resume operations. JFE Steel has restarted its blast furnace at Fukuyama works in the western region with expectations of achieving normal production levels in the coming two months. Most steelmakers are optimistic about demand recovery, especially in the auto sector.


Domestic scrap prices in Vietnam, a major buyer country are not as strong as imports. Mills cut long steel prices amid weak domestic demand. Vietnamese mills are cautious while buying imported ferrous scrap. Traders believe the scenario is expected to change soon with production ramp-ups in September. 


($1= JPY106 ; KRW1,187)

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