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

Japanese origin ferrous scrap prices were mixed in export markets. Halt in auto production and low domestic demand in other sectors drove Japan yards to eye seaborne trades. Domestic scrap prices decreased by JPY500-1000/mt this week. 

Export market

Global ferrous prices dropped by $5-7/mt driving mills in Southeast and Northeast Asia to lower  their bids for Japanese scrap this week.

Despite this, the weekly Davis Index for #2 HMS settled at JPY23,750/mt ($221/mt) fob Japan on Wednesday, up by JPY750/mt. Trades for #2 HMS were at JPY23,500-24,000/mt fob Japan, up by JPY1,000/mt from a week ago. Small bulk cargo offers were at JPY24,500-25,000/mt fob Japan. 


Bullishness in Japanese ferrous scrap prices is unlikely to persist, pressured by sluggish global demand. 

The weekly Davis Index for Busheling settled at JPY26,500/mt ($246/mt) fob Japan on Wednesday, up JPY750/mt, with trades reported at the index price. 


Demand for Busheling from South Korea declined due to suspension of auto production in the country. Japanese scrap suppliers are now eyeing other Asian markets like Bangladesh and India to divert their supply.  


Japanese HMS 1&2 (50:50) in small bulk cargoes traded at $250-255/mt cfr Vietnam and its index settled at $253/mt cfr Vietnam, down by $10/mt from the prior week. Bids from mills were at $250/mt cfr Vietnam.

The Davis index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $245/mt cfr Taiwan, down by $10/mt from the prior Wednesday. Mills’ bids were at $240-245/mt cfr Taiwan. Consumption of scrap in Taiwan remained healthy due to a stable domestic finished steel demand. Japanese HS scrap in bulk cargoes traded at $270/mt cfr Vietnam. 


A major South Korean mill booked Japanese #2 HMS at $226-227/mt fob Japan, up by $5/mt from the prior week.

Few yards are paying JPY21,500-22,500/mt fas Tokyo bay for collection of #2 HMS with its index settling at JPY22,000/mt fas Tokyo bay, up JPY1,000/mt from the prior week. 


Domestic market

Trades for shredded and HS concluded in the range of JPY24,000-24,500/mt fas Japan, unchanged from the prior week. 

Tokyo Steel lowered domestic scrap purchase prices by JPY500/mt at its Kyushu and Utsunomiya plants effective Mar 4. Bids for #2 HMS dropped to JPY19,500/mt del Utsunomiya plant in the Kanto region and JPY19,000/mt del Kyushu plant. 


Bids for #2 HMS in Tahara, Okayama and Takamatsu, remained unchanged at JPY20,500/mt, JPY19,000/mt and JPY18,000/mt, respectively. Earlier, the steelmaker had lowered its prices by JPY500/mt only at Kyushu plant effective Feb 28. 

Bids for Bushelling remained at JPY22,500/mt del Tahara and JPY21,500/mt del Utsunomiya.




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