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

Ferrous scrap domestic and export prices in Japan trended further up this week. Tokyo Steel raised domestic ferrous scrap prices second time this week. Japan’s Tokyo Steel has revised ferrous scrap purchase prices by JPY1,000/mt ($9/mt) at Tahara and Utsunomiya works and by JPY500/mt ($5/mt) at other three works, effective Dec 3. Purchase price for #2 HMS was at JPY33,500/mt ($320/mt) del Tahara plant and JPY30,000/mt del Kanto plant. 


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 $359.7/mt cfr on Tuesday, up by $13/mt from Nov 25. Market participants expect a further rise in global prices amid container and ferrous scrap shortage, globally. 


Asian countries are cautiously but market participants do not expect a fall in December prices. They expect buyers to purchase at current levels before prices move up further. Asian buyers are expected to focus on Japanese bulk and Russian A3 scrap to offset the rising deeps sea prices of US.


The weekly Davis Index for #2 HMS rose by JPY2,667/mt to settle at JPY33,375/mt ($319/mt) fas amid limited deals and rising offers. In the export market, the weekly index for the same grade rose by JPY2,740/mt to JPY34,750/mt fob Japan. Traders indicated that the price will rise further this week by JPY500-1000/mt after Tokyo Steel lifted prices. Deals were heard for the grade at $365 cfr Vietnam this week.


In the Kanto region, the Davis Index for #1 HMS settled at JPY34,500/mt($309/mt) fas port, up by JPY2,250/mt. The index for the same grade rose by JPY2,375/mt to JPY35,500/mt fob Japan, with no deals heard at the index price.


The weekly Davis Index for HS and shredded grade rose by JPY2,417/mt and JPY2,250/mt to JPY36,500/mt fas, respectively. 


Yards offered Japanese HMS 1&2 (50:50), Wednesday, at $365/mt cfr Taiwan, up by $15/mt from the prior week. The index for the grade rose by $25/mt to settle at $360/mt cfr Taiwan. In Vietnam, the index for Japanese HMS 1&2 (50:50) increased by $26/mt to settle at $370/mt cfr, with no trades heard. Offers for the grade rose to $375/mt cfr Vietnam on Wednesday.


In the bulk market, deals for #2HMS were at $345-365/mt from prior Wednesday. Offers for Japanese Shindachi were at JPY37000-37500/mt with an expectation of further rise this week. Asian importers are trying to negotiate at lower bids but are expected to give in to the offers from Japanese exporters. Market participants indicated that prices are not expected to fall till January and are closely analysing Turkish deals.



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