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

Japanese ferrous scrap export prices fell by JPY500-1000/mt ($5-9/mt) due to continued drop in demand. A glut of ferrous scrap despite auto plants like Toyota or Ford suspending operations and lack of finish steel demand in the country pressured prices. 

Billet export prices were weighed down by lockdowns in Southeast Asian countries like Philippines, Malaysia and Vietnam. A recent billet trade by Japanese supplier concluded at $395-400/mt cfr Taiwan, down by $10/mt from the prior week, according to Davis Index source.  


The weekly Davis Index for #2 HMS settled at JPY20,250/mt ($188/mt) fob Japan on Wednesday, down by JPY500/mt. Trades for #2 HMS concluded at JPY20,500-21,000/mt fob Japan late last week before demand plunged due to a lockdown in Vietnam, Japan’s major trade partner.  


A few yards could drop offers for #2 HMS to JPY20,000/mt fob Japan as demand in overseas markets ground to a halt this week. The Davis Index for busheling settled at JPY22,750/mt ($212/mt) fob Japan, down by JPY500/mt from the prior Wednesday.  

 Suppliers offered #2 HMS at $220-225/mt cfr Taiwan. The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $223/mt cfr Taiwan, down by $7/mt from the prior Wednesday. Mills bid for the same at $215-220/mt cfr Taiwan following a drop of $10-15/mt in containerised offers from the US.  


Japanese HMS 1&2 (50:50) in small bulk cargoes was offered at $225-235/mt cfr Vietnam, with a few bids at $220/mt cfr Vietnam. The index for HMS 1&2 (50:50) settled at $227/mt cfr Vietnam, down by $8/mt from the prior week. Offers for HS and busheling scrap in small bulk cargoes were at $250-255/mt cfr Vietnam, with no takers at present. 


Japanese yards offered #2 HMS at JPY19,500-20,000/mt fas Tokyo bay with its index settling at JPY19,500/mt fas Tokyo bay, down by JPY500/mt from the prior week.  


The International Olympic Committee and Japanese organisers have decided to postpone Olympics games earlier scheduled on July 23 in Tokyo to Aug 8, 2021. The move comes at a great cost for the Japanese economy, which had already invested $13bn for a run-up event and raised $3bn from domestic sponsors. Steel demand also plunged as the games related infrastructure projects went on hold.  

The Davis Index for HS and shredded scrap fell by JPY500/mt from the prior week and settled at JPY22,250/mt and JPY22,000/mt fas Japan, respectively. Japanese yen appreciated to JPY107.6 against US$1 on Wednesday from JPY111.30 in the prior week. 


Japan domestic

Japan’s domestic scrap prices remained flat this week, though export prices continued to fall on global cues. Tokyo Steel held ferrous scrap purchase prices unchanged after decreasing them by JPY500/mt at all five works effective March 28. Prices for #2 HMS were at JPY17,500/mt ($163/mt) del Kyushu plant. While bids for #2 HMS in Utsunomiya, Tahara, Okayama and Takamatsu were at JPY19,000/mt, JPY20,000/mt, JPY18,500/mt and JPY17,500/mt, respectively. Bids for busheling were at JPY22,000/mt del Tahara and JPY21,000/mt del Utsunomiya.  


South Korean ferrous scrap prices follow global suit 

Imported ferrous scrap prices in South Korea have remained on a downtrend throughout March falling by a total of $35-40/mt. Mills in the country mull production halts to avoid piling steel inventories amid the COVID-19 pandemic. Prices dropped by $10/mt in the containers market this week following global cues. Trades were limited. In the bulk market, no major deals were reported from Japan, US and Russia despite a sharp drop in bulk prices.  


The weekly Davis Index for containerised HMS 1&2 (80:20) settled at $219/mt cfr South Korea, down by $9/mt from the prior Wednesday. 


The weekly Davis Index for containerised shredded settled at $228/mt cfr South Korea, down by $7/mt. The index for P&S and busheling settled at $236/mt cfr, down $9/mt and $245/mt cfr, down $10/mt respectively from the prior Wednesday.  


($1= JPY107.06; KRW1,231.1)


Leave a Reply

Your email address will not be published.