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

Japanese ferrous scrap export prices increased on the back of rising demand in Taiwan, Vietnam and South Korea. Scrap suppliers are waiting for Hyundai Steel’s tender result on Thursday for a price direction. Piled up containers have caused a congestion at South Korean ports.Japanese suppliers thus preferred to sell in Vietnam.   


The weekly Davis Index for #2 HMS settled at JPY23,000/mt ($214/mt) fob Japan on Wednesday, up by JPY1,500/mt. Trades for #2 HMS concluded at JPY23,000/mt fob Japan, up JPY1,000/mt from the prior week. South Korean steel mills booked bulk volumes of Japanese HMS scrap in the last week. 


In small bulk cargoes, #2 HMS was offered at $255-260/mt cfr Vietnam, up by $10/mt from the prior week. Bids were at $245-250/mt cfr Vietnam.

The Davis Index for busheling settled at JPY25,750/mt ($239/mt) fob Japan, up by JPY750/mt from the prior Wednesday.

The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $240/mt cfr Taiwan, up by $5/mt from the prior Wednesday. Taiwanese mills bid for #2 HMS at $235/mt cfr. Trades, however, concluded at $240/mt cfr Taiwan. Buyers expect Japanese prices to decline following global cues. 


The index for HMS 1&2 (50:50) settled at $250/mt cfr Vietnam, up by $7/mt from the prior week. 

Offers for busheling in small bulk cargoes were at $280-285/mt cfr Vietnam and HS were at $270-275/mt cfr Vietnam. Offers for busheling scrap in small bulk cargoes were at JPY25,500-26,000/mt fob Japan, up by JPY500-1000/mt from the prior week.


Japan Iron and Steel Federation state the country’s crude steel production in April 2019-March 2020 hit a ten-year low of 98.43mn mt, down 4.3pc from the prior year. 


The weekly index for #2 HMS settled at JPY21,500/mt fas Tokyo bay on Wednesday, up by JPY500/mt. Scrap collection rates dropped significantly this week. 


Prices for higher grade scrap remained unchanged with both, demand and supply limited. The weekly index for HS settled at JPY24,500/mt fas Japan and shredded at JPY24,000/mt fas Japan, both unchanged. 


Japan’s domestic scrap prices were flat amid weakened demand. Tokyo Steel announced production cuts on the back of subdued finished steel demand. Bids for #2 HMS remained unchanged at JPY18,500/mt delivered Utsunomiya in Kanto region and JPY17,500/mt del Kyushu plant. Bids for busheling at Tahara and Utsunomiya remained at JPY20,500/mt fob Japan.




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