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

Domestic ferrous scrap and export prices in Japan trended up on Wednesday. Tokyo Steel raised domestic scrap prices by JPY1,500/mt ($14.2/mt) for its Tahara plant, JPY1,000/mt for Takamatsu and Okayama plant and by JPY500/mt for Kyushu and Utsonomiya plant. Average bids for #2 HMS at Kanto tender were at JPY30,605/mt fas.


On Wednesday, #2 HMS price were at JPY29,500/mt delivered Tahara consumer, JPY29,000/mt delivered Okayama consumer, JPY28,500/mt delivered Kyushu consumer, JPY26,500/mt delivered Utsunomiya consumer and JPY28,000/mt delivered Takamatsu consumer.


Japan’s monthly scrap export tender ‘Kanto Tetsugen’ concluded Wednesday, Nov 11 with the winning bid average at JPY30,605/mt ($291/mt) fas Tokyo bay, up JPY2,199/mt ($21/mt) from JPY28,406/mt fas Tokyo bay in the prior month. The tender sold a total of 20,000mt of ferrous scrap for deliveries scheduled at the latest by December.


Increased buying by Turkish importers have lead market participants to expect a further rise in global ferrous scrap prices with bulk deals for HMS 1&2 (80:20) heard at $305/mt cfr Turkey. Scrap exporters raised offers despite limited deals as they expect demand for scrap to improve in their domestic markets.


The weekly Davis Index for #1 busheling rose by JPY1,125/mt to settle at JPY33,000/mt ($313/mt) fas from the prior week amid limited deals. In the export market, the weekly index for #1 busheling (Shindachi) rose by JPY1,307/mt to JPY33,875/mt fob Japan. Korean bills are yet to bid for Japanese scrap this week and may resist high-priced offers.

In the Kanto region, the Davis Index for #2 HMS settled at JPY29,000/mt($275/mt) fas port, up by JPY1,225/mt. Offers rose this week to JPY30,500/mt($289/mt) fas. The index for the same grade rose by JPY1,375/mt to JPY30,000/mt fob Japan. Traders expect Japanese export prices to increase further amid better demand and higher Kanto tender bids.


The weekly Davis Index for HS and shredded grade settled up by JPY1,000/mt and JPY975/mt at JPY32,000/mt fas and JPY33,000/mt fas, respectively. Offers for HS rose to JPY32,500/mt fob. The weekly index for shredded settled at JPY32,025/mt fas, up by JPY2,275/mt from a week ago. 

Yards offered Japanese HMS 1&2 (50:50) Wednesday at $330-335/mt cfr Taiwan, up by $15-20/mt from the prior week, but no deals were heard. The index for the grade rose by $16/mt to settle at $319/mt cfr Taiwan. The index for the same grade increased by $15/mt for Vietnam to settle at $328/mt cfr, with no trades heard. Offers for the grade rose to $335/mt cfr Vietnam on Wednesday with no trades heard. Few offers were heard for HMS 1&2 (80:20) of US-origin at $320/mt cfr Vietnam in containers this week, up $5/mt cfr.

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 demand for billets from China and rise in domestic demand from infra and auto sectors. 


Leave a Reply

Your email address will not be published.