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

Domestic ferrous scrap prices in Japan were flat this week, while export prices rose on demand from China since Jan 1 as the country resumed imports of ferrous scrap. Tokyo Steel’s domestic scrap prices were flat from the prior week with #2 HMS at JPY43,000/mt ($418/mt) del Tahara plant.


With no Turkish ferrous scrap deals heard this week many Asian buyers resisted rising offers. Market participants indicated that the rise of iron ore prices in China and increased booking of Japanese scrap by Chinese mills could push export prices up in the next few days. Other Asian buyers are yet to raise bids. In Turkey, the daily Davis Index for HMS 1&2 (80:20) Tuesday settled at $481.25/mt cfr, flat from Monday.


The weekly Davis Index for Japanese #2 HMS rose JPY250/mt to JPY43,000/mt fas amid higher offers due to resumption of steel scrap imports from China. In the export market, the weekly index for the grade rose by JPY500/mt at JPY44,250/mt fob Japan with offers at JPY45,500/mt.


A few offers for Japanese #1 busheling (Shindachi) rose to JPY48,000/mt fob. The weekly index for the grade increased by JPY250/mt at JPY46,000/mt fas and up by JPY250/mt at JPY47,750/mt fob Japan. Chinese mills preferred HS over lower grades this week, said traders.


Two bulk deals of 3,000mt and 2,800mt heard this week for HS scrap on cfr China basis at unconfirmed prices. Market participants indicated several deals are being negotiated. As China revives its most-favoured-nation (MFN) system from Jan 1 scrap suppliers from Japan and Russia will benefit. A surge in exports from Japan could support prices in January, said traders. The weekly Davis Index for HS and shredded grade rose by JPY250/mt and JPY125/mt to JPY45,875/mt fas and JPY45,000/mt fas, respectively, amid rising offers and limited deals.


In the Kanto region, the Davis Index for #1 HMS rose JPY200/mt to JPY44,075/mt fas from the prior week. The index for the same grade rose by JPY125/mt to JPY45,250/mt fob Japan.


Yards offered Japanese HMS 1&2 (50:50) at $465-470/mt cfr Taiwan this week. The index for the grade was up by $5/mt at $463/mt cfr Taiwan.


In Vietnam, the index for Japanese HMS 1&2 (50:50) rose $5/mt to $468/mt cfr, with no trades heard. Offers at $465-470/mt cfr but no deals heard.



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