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

Japanese ferrous scrap prices rose in both, domestic and export markets supported by increased bids in the monthly Kanto scrap export tender. The impact of a supply crunch and strengthened global finished steel prices also reflected on ferrous scrap prices. The June Kanto tender sold 21,000mt ferrous scrap with the average of winning bids at JPY26,360/mt ($245/mt) fas Tokyo Bay, up by JPY3,880/mt from JPY22,480/mt fas Tokyo Bay in May.


The weekly Davis Index for #2 HMS settled at JPY26,500/mt ($247/mt) fob Japan on Wednesday, up by JPY1,750/mt. Trades for #2 HMS concluded at JPY26,000-26,500/mt fob Japan but offers then rose to JPY27,000/mt fob Japan.

The Davis Index for busheling settled at JPY29,000/mt ($270/mt) fob Japan, up by JPY1,750/mt from a week ago. Demand for higher scrap grades remained comparatively lesser from overseas markets amid limited auto production activities. Thus, the price gap between high-grade scrap and low-grade scrap has narrowed. 


In small bulk cargoes, #2 HMS traded at $280-285/mt cfr Vietnam, up by $10/mt from the prior week. Offers of $290/mt cfr Vietnam were countered by bids at $275/mt cfr Vietnam.

The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $272/mt cfr Taiwan, up by $19/mt from the prior Wednesday. Trades concluded at $270-275/mt cfr Taiwan. On Wednesday, suppliers raised offers to $280/mt cfr Taiwan levels with no buyers interested at those prices. 

The index for HMS 1&2 (50:50) settled at $283/mt cfr Vietnam, up by $18/mt from the prior week. Vietnamese mills in South region booked HMS 1&2 (50:50) at $280-285/mt cfr Vietnam, up by $20/mt from the prior week. These mills have increased inquiries for US-origin scrap as a lower-priced alternative for Japanese scrap. 


The weekly index for #2 HMS settled at JPY25,500/mt fas Tokyo bay on Wednesday, up by JPY2,000/mt. The weekly index for shredded rose by JPY1,750/mt to JPY27,250/mt fas Japan. HS scrap traded at JPY28,000/mt fas Tokyo.



Japan’s domestic ferrous scrap prices continued to move up following rising export prices. Tokyo Steel announced a fifth price hike since the beginning of June. Effective June 11, the mill raised its domestic ferrous scrap prices by JPY1,000/mt for all scrap grades at all its plants barring Tahara. Prices have increased by a total of JPY3,000-4,000/mt since the beginning of June. 

Tokyo Steel’s bids for #2 HMS are at JPY25,500/mt ($237/mt) del to Utsunomiya plant in the Kanto region.  

Bids for #2 HMS remained at JPY23,000/mt and JPY24,500/mt delivered Kyushu and Okayama plants, respectively. Bids for busheling at Tahara and Utsunomiya were at JPY27,000/mt and JPY27,500/mt, respectively.




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