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

A shortage of domestic scrap in Japan and a rise in global scrap prices prompted exporters to raise offers. But export deals were limited as bids lagged. 

Tokyo steel raised bids for ferrous scrap purchases by JPY500/mt for all plants effective February 25. The new bids for #2 HMS were at JPY40,000/mt ($378/mt) delivered Tahara, JPY40,000/mt delivered Okayama, JPY39,500/mt delivered Kyushu, JPY40,000/mt delivered Utsunomiya and JPY39,000/mt delivered Takamatsu.


Traders raised offers for HS by $10/mt to $480-490/mt cfr China but bids were at $465-470/mt cfr. Spot iron ore price for 62fe rose by $8/mt from the prior week to $174/mt cfr Qingdao on Wednesday but fell by $1.43/mt cfr in a day due to pollution-related production restrictions. A deal heard for European P&S in bulk at $470/mt cfr, while shredded trades were at $460-462/mt cfr latter half of last week. The index for P&S 5ft (small bulk) China port settled at $474/mt cfr, up by $15/mt from the prior week.  


Exporters raised offers for #2 HMS to JPY42,000/mt fob, up by JPY1,000/mt from the week prior with the index rising by JPY1,250/mt to JPY39,750/mt($375.8/mt) fas. On a fob basis, the index remained unchanged at JPY41,250/mt fob with bids from South Korean importers remaining flat at JPY40,500/mt fob. Offers for #2 HMS were at $430-440/mt cfr. 


Bids for Japanese #1 busheling (Shindachi) rose by JPY1,500/mt to JPY44,000/mt fas from a week ago. The weekly index for the grade rose by JPY1,625/mt to JPY44,000/mt fas Japan, while on a fob basis the index was unchanged at JPY45,750/mt fob. With Turkish mills raising scrap purchase volumes as well as prices, the index for HMS 1&2 (80:20) increased by $27.3/mt to $444.8/mt on Tuesday from Feb 17. Thus, many traders are expecting a further rise in global ferrous scrap prices next week.


The weekly Davis Index for HS and shredded, Wednesday, rose by JPY1,500/mt to JPY44,750/mt fas, respectively. Limited trades were heard this week as most mills waited for cues from the Chinese market.


Offers for HMS 1&2 (50:50) rose by $25-30/mt to $445/mt cfr Vietnam this week. After Kansai and Kanto tenders this month, the index for the grade rose by $27/mt to $441/mt cfr Haiphong. Buyers resisted offers. 


In Taiwan, the index for Japanese HMS 1&2 (50:50) rose by $32/mt to $433/mt cfr. Offers rose to $435/mt cfr on Wednesday, up by $30/mt from the prior week.


Buyers from Vietnam, South Korea, and Taiwan have either paused bookings amid elevated offer levels or tried to negotiate for trades at last week’s price levels.




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