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

Japanese ferrous scrap export prices picked up this week due to tightened supply. Though Korean steelmakers, including Hyundai and Dongkuk steel, were not interested in fresh purchases, Japanese scrap suppliers continued to offer cargoes to seaborne markets to encourage buyers’ sentiment.

The weekly Davis Index for #2 HMS settled at JPY19,500/mt ($181/mt) fob Japan on Wednesday, up by JPY750/mt. 

Trades with buyers in South Korea, Vietnam and Taiwan for #2 HMS concluded at JPY19,500-20,000/mt fob Japan, up by JPY500-1000/mt. 

Small bulk cargoes of #2 HMS were offered at $240-245/mt cfr Vietnam, up by $10/mt from the prior week. 

Offers for #2 HMS rose to JPY20,500/mt fob Japan for Vietnam and Taiwan buyers.

The Davis Index for busheling settled at JPY23,000/mt ($214/mt) fob Japan, up by JPY1000/mt from the prior Wednesday.

The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $228/mt cfr Taiwan, up by $15/mt from the prior Wednesday. 

On Monday, a Taiwanese mill booked the grade at $228-230/mt cfr Taiwan. Subsequently, offers, rose to $230-235/mt cfr Taiwan in line with rising domestic scrap and rebar prices in Taiwan.

Japanese HMS 1&2 (50:50) in small bulk cargoes was offered at $235-240/mt cfr Vietnam, up by $10-15/mt with bids from Vietnamese steel mills still around $230/mt cfr Vietnam. 

The index for HMS 1&2 (50:50) settled at $233/mt cfr Vietnam, up by $15/mt from the prior week.

Offers for HS and busheling scrap in small bulk cargoes were at $270-275/mt cfr Vietnam, a rise of $15-20/mt from the prior week, but there were no takers at these levels for now.

Yards offered #2 HMS at JPY19,500-20,000/mt fas Tokyo bay with the index settling at JPY19,750/mt fas Tokyo bay, up by JPY500/mt from the prior week.

The Davis Index for HS rose by JPY1,250/mt to settle at JPY23,250/mt fas Japan. Trades for HS scrap were reported in the range of JPY23,000-23,500/mt fas Japan. 

Tokyo steel’s domestic scrap prices flat amid extended emergency 

The Japanese government announced an extension to the state of emergency declared in the country putting domestic scrap trades on hold. 

Japanese scrap yards refused to accept lower bids, citing a recovery in export prices and a sharp drop in generation rates.

Japanese domestic scrap prices remained flat with Tokyo Steel’s bids unchanged at Tahara and Utsunomiya. Bids for #2 HMS remained unchanged delivered Utsunomiya in Kanto region, and Tahara in the central region, at JPY18,500/mt and JPY19,500/mt, respectively. The steelmaker also held the finished steel prices for May shipments unchanged from the prior week.

Nippon steel corporation has decided to temporarily idle its blast furnace in Kimitsu, eastern Japan, to respond to the immediate sharp drop in the demand for steel products in both domestic and exports markets, according to a company statement released on April 21.




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