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

Japanese exporters raised ferrous scrap offers post-Kansai tender on 13 April. The winning bid was JPY42,960/mt ($394.38/mt) fas for 5,000 mt #2 HMS.


Post Kansai tender, Tokyo Steel raised ferrous scrap bids by JPY1,000-1,500/mt ($-9.17-13.7/mt) for the second time this week. The steelmaker raised ferrous scrap purchase prices by JPY1,500/mt ($13.7/mt) delivered Tahara, Okayama and Takamatsu, effective March 13, while up JPY1,000/mt for Kyushu and Utsunomiya plant. Tokyo steel’s bids for #2 HMS are at JPY44,000/mt ($403/mt) delivered Tahara, JPY43,000/mt delivered Okayama, JPY43,000/mt delivered Kyushu, JPY42,000/mt delivered Utsunomiya and JPY42,000/mt delivered Takamatsu.


Many Asian mills raised bids with deals heard at JPY47,000/mt cfr South Korea early in the week, while offers rose on rising demand for Japanese scrap. The weekly index for #2 HMS rose JPY1,292/mt ($11.8/mt) to JPY43,125/mt ($395.5/mt) fob with trades at JPY43,000/mt fob for South Korean buyer and offers rising further to JPY43,500-44,000/mt fob. On a fas basis, the index rose by JPY1,417/mt post-Kansai tender to JPY41,417/mt ($379.8/mt) fas.


Increased inquiries from China and other Asian countries could lift offers further, expect traders. The index for P&S 5ft (small bulk) China port settled at $496/mt cfr, up by $2/mt from the prior week on rising offers. Offers for HS or P&S rose by $5/mt to $500-505/mt cfr China while bids remained at $490/mt cfr on Wednesday.


Production cuts and promotion of scrap over iron ore by the Chinese government to curb pollution made many traders raise inquiries this week. Prices of 62pc Fe iron ore rose by $1.2/mt to around $172/mt on Tuesday on recovering demand.


Offers for Japanese #1 busheling (Shindachi) rose by over JPY1,000-1,500/mt due to a shortage of scrap and strong global cues. Freight charges have remained high resulting in increased landing cost for overseas buyers. The weekly index for the grade rose by JPY1,375/mt to JPY48,375/mt fob Japan, while on a fas basis, the index rose by JPY750/mt to JPY46,250/mt fas. Trades for Shindachi heard at JPY52,000/mt cfr South Korea this week. Offers rose to JPY49,000/mt fob.


With Turkish mills halting purchases due to Ramadan holidays, the index for HMS 1&2 (80:20), Tuesday, fell by $3.25/mt to $427.5/mt cfr Turkey from Monday. South Asian buyers are closely watching Turkish and Chinese purchase and are waiting for Turkish purchase next week to gauge market direction.


The weekly Davis indices for HS and shredded, Wednesday settled at JPY47,091/mt and JPY46,458/mt fas Japan, up by JPY1,841/mt and JPY1,333/mt, respectively amid limited trades.


Offers for HMS 1&2 (50:50), Wednesday, rose to around $465-470/mt cfr Vietnam, up by $5-10/mt from the prior week with the index for the grade settling at $464/mt cfr Haiphong up $17/mt on global cues.


The index for Japanese HMS 1&2 (50:50) rose by $15/mt to $455/mt cfr Taiwan. Traders said prices are supported by rising Japanese scrap offers and Chinese steel and iron ore futures. Most offers rose to $460/mt cfr up $10/mt from the prior week.



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