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

Ferrous scrap domestic and export prices in Japan trended up this week. Tokyo Steel raised domestic scrap prices for the fourth time in two weeks and sixth time in November indicating strong demand.


Increased buying in Turkey coupled with bullish offers from scrap exporting countries have led market participants to expect a further rise in global ferrous scrap prices. In Turkey, the index for HMS 1&2 (80:20) settled at $339.5/mt cfr on Tuesday, up by $11.5/mt from the Nov 18. Market participants expect a further rise in global prices amid container and ferrous scrap shortage globally. Asian countries are cautiously buying but market participants do not expect a fall till December. 


With suppliers in the US holding on to offers amid Thanksgiving holidays, Asian buyers are expected to focus on Japanese bulk and scrap from other origins.


The weekly Davis Index for #2 HMS rose by JPY1,458/mt to settle at JPY30,708/mt ($294/mt) fas amid limited deals and rising offers. In the export market, the weekly index for the same grade rose by JPY1,510/mt to JPY32,010/mt fob Japan. In line with the last week’s scrap price hike by South Korean mill, Hyundai raised bids by JPY2,000/mt from the prior week to $305/mt fob. Offers rose to $310/mt fob with no buyer.


In the Kanto region, the Davis Index for #1 HMS settled at JPY32,250/mt($309/mt) fas port, up by JPY1,500/mt. The index for the same grade rose by JPY1,500/mt to JPY33,125/mt fob Japan, with no deals heard.


The weekly Davis Index for HS and shredded grade rose by JPY1,083/mt and JPY750/mt to JPY34,083/mt fas and JPY34,250/mt fas, respectively. Deals for shredded were heard at JPY34,000-34,500/mt this week.


Yards offered Japanese HMS 1&2 (50:50), Wednesday, at $340/mt cfr Taiwan. The index for the grade rose by $11/mt to settle at $335/mt cfr Taiwan. In Vietnam, the index for Japanese HMS 1&2 (50:50) increased by $10/mt to settle at $344/mt cfr, with no trades heard. Offers for the grade rose to $350/mt cfr Vietnam on Wednesday, with no trades heard.  


In the bulk market, offers for #2HMS were at $345-347/mt on Friday, which rose to $355/mt on Wednesday with no deals heard as buyers restrained from buying imported scrap.


Traders are optimistic of a recovery in demand as steelmakers are likely to ramp-up production in most Asian countries amid a gradual rise in steel demand in their domestic markets.



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