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

Japanese ferrous scrap export prices trended up on Wednesday, while Tokyo Steel domestic scrap prices remained flat. Tokyo Steel raised ferrous scrap prices by JPY500/mt ($4.8/mt) for all grades effective Nov 3 for four of its plants, except Utsunomiya. Offers for #2 HMS were at JPY27,500/mt delivered Tahara, Kyushu and Okayama plant.

Increased buying by Turkish importers have lead market participants to expect a further rise in global ferrous scrap prices. Scrap exporters raised offers despite limited deals as they also expect demand for scrap to improve in their domestic markets.


Deals for #1 busheling (Shindachi) Wednesday heard at JPY31,500-32,500/mt fob or JPY33,500-34,500/mt cfr Vietnam this week. The weekly Davis Index for the grade rose by JPY1,875/mt to settle at JPY31,875/mt ($304/mt) fas from the prior week amid limited deals. 


In the export market, the weekly index for #1 busheling (Shindachi) rose by JPY2,068/mt to JPY32,568/mt fob Japan. Hyundai bid for Japanese #1 busheling (Shindachi) scrap on Wednesday at JPY33,000/mt fob, with no deals heard. Bids for #1 HMS was at JPY29,500/mt. No bids were made for #2 HMS.

In the Kanto region, the Davis Index for #2 HMS settled at JPY27,750/mt($253/mt) fas port, up by JPY500/mt. Bids were heard at JPY27,500/mt fas. The index for the same grade rose by JPY648/mt to JPY28,625/mt fob Japan. Traders expect Japan export prices to increase further amid better demand. 


The weekly Davis Index for HS grade settled at JPY31,000/mt fas. Bids for the grade were at HS at JPY32,000/mt fob.

The weekly index for shredded settled at JPY32,025/mt fas, up by JPY2,275/mt from a week ago. Hyundai bids were heard at JPY32,000/mt fob. South Korean mills focused more on bulk cargo deals which are priced lower than containerized scrap due to which Hyundai raised bids by almost JPY2,500/mt fob from October 16.

Yards offered Japanese HMS 1&2 (50:50) Wednesday at $305-307/mt cfr Taiwan, up by $10 from the prior week, but no deals were heard. The index for the grade rose by $9/mt to settle at $303/mt cfr Taiwan. The index for the same grade increased by $7/mt for Vietnam to settle at $313/mt cfr, with no trades heard. Offers for the grade rose to $310/mt cfr Vietnam on Wednesday with no trades heard. Few trades were heard for HMS 1&2 (80:20) of US-origin at $315/mt cfr Vietnam in containers. 

Traders are optimistic of a recovery in demand as steelmakers are likely to ramp-up production in most Asian countries amid gradual rise in demand from infra and auto sectors.



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