Japanese ferrous scrap export prices rose by JPY1,500-2,000/mt ($14-19) from the prior Wednesday driven by a recovery in demand from Vietnam and South Korean mills. A rise in global steel prices aided mills to buy scrap at higher prices. Suppliers are, however, looking to raise offers further amid indications of price rise in the global market.
The weekly index for #2 HMS settled at JPY23,500/mt fas Tokyo bay on Wednesday, up by JPY1,500/mt. Many EAF makers raised their purchase prices. Tokyo steel on the other hand has announced maintenance activities.
The weekly index for shredded increased by JPY1500/mt to JPY25,000/mt fas Tokyo bay Japan. A few trades of HS scrap were at JPY25,500-26,000/mt fas Tokyo, up from JPY24,000-24,500/mt a week earlier.
The Davis Index for #2 HMS settled at JPY24,500/mt ($229/mt) fob Japan on Wednesday, up by JPY1,500/mt from the prior week. A few trades for #2 HMS with Taiwanese and Vietnamese buyers concluded at JPY24,000-24,500/mt fob. On Wednesday, suppliers’ offers were at JPY25,500-26,000/mt fob Japan.
The Davis Index for busheling settled at JPY27,000/mt ($252/mt) fob Japan, up from JPY25,500/mt fob on the prior Wednesday.
In small bulk cargoes, #2 HMS was offered at $260/mt cfr Vietnam on Wednesday, up by $10/mt from the prior week. The index for HMS 1&2 (50:50) settled at $264/mt cfr Vietnam, up by $8/mt from the prior week. Mills in Vietnam’s southern region booked Japanese HMS 1&2 (50:50) at $260-265/mt cfr Vietnam.
The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $257/mt cfr Taiwan, up by $9/mt from the prior Wednesday. Trades for the grade concluded at $255-260/mt cfr Taiwan. Early this week, Japanese #1 busheling and HS scrap in small bulk cargoes were offered at $270-275/mt cfr Taiwan, up by $10/mt with limited buyers at those levels.
Japan’s domestic ferrous scrap prices also strengthened in line with the rising export prices. Tokyo Steel kept its domestic scrap purchase prices flat at all its plant since July 17, except at Utsunomiya mill in Kanto, where bids were increased by JPY500/mt. The steelmaker has scheduled BF maintenance activities amid low demand.
Tokyo’s purchase prices for #2 HMS are at JPY22,000/mt ($205/mt) delivered Utsunomiya mill. Bids for #2 HMS and busheling are at JPY23,500/mt and JPY25,000/mt delivered Kyushu and JPY23,000/mt and JPY24,000/mt delivered Okayama mill, respectively.
The steelmaker has decided to revamp its continuous pickling line at the facility in Kurashiki, Okayama works. It will increase productivity for difficult-to-descale materials by reducing energy consumption. The upgrade will help the company increase productivity and efficiency.