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

Japanese ferrous scrap export prices rose by JPY500-1,000/mt this week. Higher average prices of winning bids at Japan’s monthly Kanto tender are slowly pushing up scrap prices. Shortage of scrap in Japan led to higher bids for Kanto scrap exports.


In the export market, bids at the Kanto were JPY2,154/mt higher compared to last month at JPY29,370 fas for 10,000mt of #2 HMS. Despite export prices rising by JPY500-1,000/mt this week, price levels are yet to reach the average of winning bids at the Kanto tender. 

In September’s Kansai tender, bids for 5,000mt were up by JPY1,980/mt at JPY29,310/mt ($279/mt) fas.


In the Kanto region, #2 HMS was offered at JPY27,500-28,500/mt fas port. In the export market, #2 HMS traded last at JPY28,000-29,000/mt fob Japan, and equivalent at $310-315/mt cfr Vietnam, while this week offers rose to JPY29,500/mt fob.  


The weekly Davis Index for #2 HMS settled up by JPY250/mt at JPY29,250/mt fob, while the index settled flat at JPY28000/mt fas, with deals heard at index prices.


Deals for #1 busheling (Shindachi) were heard at JPY30500/mt fas with index settling at the same level. The weekly index for #1 busheling (Shindachi) was up by JPY450/mt at JPY31,575/mt fob, with no deals heard. Deals for Japanese HS were heard at JPY30,000-30,500/mt fas with the index rising JPY500/mt to JPY30250/mt fas.


Market participants said domestic demand for scrap in Japan far exceeds demand from export markets as many Asian buyers are holding back purchases to see how Turkey market pans out in the next few days. Limited scrap was offered in the export market. The index for #1 HMS increased by JPY200/mt and JPY225/mt to JPY29,450/mt fas and JPY30,475/mt fob Japan, respectively. 


With a rise in Japanese ferrous scrap export prices, most mills in Taiwan preferring containerised scrap and domestic scrap. Yards offered Japanese HMS 1&2 (50:50) at $300-305/mt cfr Taiwan early this week, with bids at $300/mt cfr. The weekly index for the grade rose by $10/mt to $298/mt cfr due to rising offers.


The index for HMS 1&2 (50:50) rose by $11/mt to at $298/mt cfr Vietnam, with no trades heard. Bids for the grade were at $300/mt cfr Vietnam. HS and shindachi scrap in small bulk cargo was offered at $330-335/mt cfr Vietnam, while a deal was heard at $310/mt cfr. 


Vietnamese mills are cautious of buying imported ferrous scrap. Traders believe the scenario is expected to change soon with production ramp-ups in September. 



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