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

Japanese ferrous scrap prices remained mixed for yet another week. The country tightened its restrictions to control COVID-19 outbreak. A fall in average bids for April’s Kanto scrap export tender coupled with a decline in bids from South Korean mills pressured exports prices. In the domestic markets, a supply crunch stopped prices from declining further. 


On April 10, Hyundai steel placed bids for Japanese #2 HMS at JPY18,500/mt fob, down by JPY2500/mt from its earlier bids. 

The weekly Davis Index for #2 HMS settled at JPY18,750/mt ($175/mt) fob Japan on Wednesday, down by JPY500/mt. Trades with buyers in South Korea, Vietnam and Taiwan for #2 HMS concluded at JPY19,000/mt fob Japan. But later, the bids fell to JPY18,500/mt fob Japan. 


The Davis Index for busheling settled at JPY22,000/mt ($205/mt) fob Japan, down by JPY500/mt from the prior Wednesday.


 The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $213/mt cfr Taiwan, up by $2/mt from the prior Wednesday. On Wednesday, offers, however, rose to $215-220/mt cfr Taiwan with an upward movement in global ferrous scrap and billet markets.


Japanese HMS 1&2 (50:50) in small bulk cargoes was offered at $225-230/mt cfr Vietnam, up by $10-15/mt with no bids from Vietnamese steel mills. The index for HMS 1&2 (50:50) settled at $218/mt cfr Vietnam, up by $2/mt from the prior week. Offers for HS and busheling scrap in small bulk cargoes were at $245-250/mt cfr Vietnam, with no takers.


Some traders in Japan were looking to sell in Bangladesh amid weakening demand in Southeast Asia. Bangladesh mills, though, were paying relatively higher prices. Japanese busheling scrap was heard traded at $255-260/mt cfr Chattogram.


Japanese yards offered #2 HMS at JPY19,500/mt fas Tokyo bay with its index settling at JPY19,250/mt fas Tokyo bay, down by $250/mt from the prior week.


The Davis Index for HS and shredded scrap settled unchanged at JPY22,000/mt fas Japan.Japanese yen appreciated to JPY107.28 against US$1 on Wednesday from JPY108.93 in the prior week.

Japanese domestic scrap prices flat amid emergency

 As the state of emergency continues, trades for ferrous scrap have halted. Still, scrap yards resisted lowering offers citing a shortage of ferrous scrap.


Tokyo Steel lowered ferrous scrap purchase prices by JPY500/mt at two of its works, Tahara and Utsunomiya effective April 11. Bids for #2 HMS delivered Utsunomiya in Kanto region and Tahara in the central region were at JPY18,500/mt and JPY19,500/mt, respectively. At its other three works, bids have remained unchanged since March 28 at JPY17,500/mt ($163/mt) del Kyushu plant, JPY18,500/mt del Okayama and JPY17,500/mt del Takamatsu centre.



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