Japanese ferrous scrap export prices continued to fall amid subdued demand. Prices declined by JPY500/mt from the prior week. Heavy rains in central and southern regions hampered logistics in the country. Most buyers are waiting for the Kanto Tetsugen tender scheduled to be announced on Thursday, for a price direction.
In the domestic market, prices remained under pressure as Tokyo steel reduced its scrap purchase prices thrice since the beginning of the month, the latest revision effective from July 8.
In the Kanto region, suppliers lowered offers to encourage trades. The weekly index for #2 HMS settled at JPY21,000/mt fas Tokyo bay on Wednesday, down by JPY500/mt. The weekly index for shredded dropped by JPY750/mt to JPY22,750/mt fas Tokyo bay Japan. HS scrap traded at JPY23,500/mt fas Tokyo, down from JPY24,000-24,500/mt a week earlier.
The Davis Index for #2 HMS settled at JPY22,000/mt ($205/mt) fob Japan on Wednesday, down by JPY500/mt from the prior week. A few trades for #2 HMS concluded at JPY22,000-22,500/mt fob Japan with Taiwanese and Vietnamese mills this week.
The Davis Index for busheling settled at JPY24,750/mt ($235/mt) fob Japan, down from JPY25,250/mt fob Japan on the prior Wednesday.
In small bulk cargoes, #2 HMS traded at $240-245/mt cfr Vietnam, down by $10/mt from the prior week. Bids from Vietnamese mills subsequently were at $235-237/mt cfr Vietnam, with no supplier ready to offer at these levels.
The index for HMS 1&2 (50:50) settled at $249/mt cfr Vietnam, down by $6/mt from the prior week. Mills in Vietnam’s southern region booked Japanese HMS 1&2 (50:50) at $245-250/mt cfr Vietnam, with bids on Wednesday falling to $240/mt cfr Vietnam. Japanese #1 busheling and HS scrap in small bulk cargoes were offered at $260-265/mt cfr Vietnam, with no buyers at those levels.
The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $240/mt cfr Taiwan, down by $8/mt from the prior Wednesday. Trades for the grade concluded at $235-240/mt cfr Taiwan. On Wednesday, offers for HS scrap were at $260-265/mt cfr Taiwan, but buyers were not keen at those prices.
Tokyo steel announced a third purchase price cut in July lowering bids by JPY500/mt, effective July 8 at three of its works- Okayama, Kyusyu, and Takamatsu works. Prices at Tahara and Utsunomiya remained unchanged for all grades.
After the latest revision, #2 HMS bids were at JPY21,500/mt ($200/mt) delivered Utsunomiya plant in the Kanto region, JPY23,500/mt delivered Kyushu and JPY23,000/mt delivered Okayama plant.