Japanese dockside ferrous scrap prices rose by JPY1,000-1,500/mt ($9-13/mt) this week. Japanese scrap yards are expecting bullishness in demand and refused to lower their offers. Offers were higher by JPY500-1,000/mt than the bids.
Japanese-origin scrap sold at higher level in export markets as demand from Taiwanese and Vietnamese mills increased. A shortage of supply from EU and the US markets also gave seaborne scrap trades from Japan a push.
Few yards are paying JPY21,000-21,500/mt fas Tokyo bay for collection of #2 HMS, with its index settling at JPY21,000/mt fas Tokyo bay, up JPY1,000/mt from the prior week. The weekly Davis Index for #2 HMS settled at JPY23,000/mt ($208/mt) on fob Japan, up by JPY1,000/mt on Wednesday. Trades for #2 HMS were at JPY23,000/mt fob Japan.
The Davis Index for Busheling settled at JPY25,750/mt ($233/mt) fob Japan on Wednesday, up JPY1,250/mt from the prior Wednesday, with trades reported at the index price.
Japanese HMS 1&2 (50:50) in small bulk cargoes traded at $255-265/mt cfr Vietnam, index settled at $263/mt cfr Vietnam, up $13/mt from the prior week. The depreciation of the Japanese Yen by over 1pc encouraged suppliers to turn to international market.
The Davis index for Japanese origin HMS 1&2 (50:50) settled at $255/mt cfr Taiwan, up $17/mt from the prior Wednesday.
In the domestic market, Tokyo steel held prices unchanged for ferrous scrap purchase since Feb 13. The mill is paying JPY20,500/mt for #2 HMS scrap del Tahara plant and JPY20,000/mt del Utsunomiya plant in Kanto region. Prices for #2 HMS in Kyushu, Okayama and Takamatsu were flat at JPY20,000/mt, JPY19,000/mt and JPY18,000/mt, respectively.