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

Japanese ferrous scrap export prices ended their three-week downtrend this week. The monthly scrap export tenders, Kanto and Kansai, recorded higher average bids than the current market levels encouraging yards to raise their offers. 

Though prices increased in the Kanto region, markets in other regions were largely unchanged.  

In the Kanto region, suppliers raised their offers this week. The weekly index for #2 HMS settled at JPY22,000/mt fas Tokyo bay on Wednesday, up by JPY1,000/mt. 

Trades were thin due to subdued finished steel demand. Further, rising COVID-19 cases increased the possibility of more stringent movement restrictions in the coming days. In Central and Southern regions, heavy rains impacted the logistics of raw materials. A few domestic steelmakers announced maintenance activities pressuring ferrous scrap demand. 

The weekly index for shredded increased by JPY750/mt to JPY23,500/mt fas Tokyo bay Japan. A few trades of HS scrap were at JPY24,000-24,500/mt fas Tokyo, up from JPY23,500/mt a week earlier. 


The Davis Index for #2 HMS settled at JPY23,000/mt ($215/mt) fob Japan on Wednesday, up by JPY1000/mt from the prior week. Some suppliers offered #2 HMS at JPY23,000-23,500/mt fob Japan to Taiwanese and Vietnamese mills this week. 

On July 13, Hyundai steel announced bids for Japanese #2 HMS at JPY22,000/mt fob Japan, for mixed H1: H2 at JPY22,500/mt fob Japan. But many suppliers were reluctant to accept these bids.


In the Kansai tender which concluded on July 14, 5000mt of #2 HMS scrap was sold at an average of JPY23,110/mt fas Japan. Though the average bids were down JPY2,900/mt from June, they were higher by JPY2,000/mt than the current market.


The Davis Index for busheling settled at JPY25,500/mt ($238/mt) fob Japan, up from JPY24,750/mt fob Japan on the prior Wednesday. In small bulk cargoes, #2 HMS was offered at $250/mt cfr Vietnam, up by $10/mt from the prior week. The index for HMS 1&2 (50:50) settled at $256/mt cfr Vietnam, up by $7/mt from the prior week. Mills in Vietnam’s southern region booked Japanese HMS 1&2 (50:50) at $255/mt cfr Vietnam, with a few bids still at $250/mt cfr Vietnam. On Wednesday, Japanese #1 busheling and HS scrap in small bulk cargoes were offered at $270-275/mt cfr Vietnam, with no buyers at those levels. 


The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $248/mt cfr Taiwan, up by $8/mt from the prior Wednesday. Trades for the grade concluded at $245-250/mt cfr Taiwan. 



Japan’s domestic ferrous scrap prices remained flat. Tokyo Steel held its domestic ferrous scrap purchase prices unchanged since July 8 at all its plants. The mill has its annual maintenance activities planned which are likely to impact production. 

According to a Davis Index source, the Tahara plant would be under maintenance from July 27 to Aug 7, Okayama between Aug 17-21, Kyushu from July 28 till Aug 4 and Utsunomiya plant from July 27 to Aug 5. 

Tokyo steel announced a third purchase price cut in July lowering bids by JPY500/mt effective July 8 at three of its works- Okayama, Kyusyu, and Takamatsu. Since July 8, prices have been flat. Bids for #2 HMS are at JPY21,500/mt ($200/mt) delivered Utsunomiya plant in the Kanto region, JPY23,500/mt delivered Kyushu and JPY23,000/mt delivered Okayama plant. 




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