Japanese ferrous scrap export prices trended up on Wednesday, while Tokyo Steel domestic scrap prices remained flat. Tokyo Steel raised ferrous scrap prices by JPY500/mt ($4.8/mt) for all grades effective Nov 3 for four of its plants, except Utsunomiya. Offers for #2 HMS were at JPY27,500/mt delivered Tahara, Kyushu and Okayama plant.

Increased buying by Turkish importers have lead market participants to expect a further rise in global ferrous scrap prices. Scrap exporters raised offers despite limited deals as they also expect demand for scrap to improve in their domestic markets.


Deals for #1 busheling (Shindachi) Wednesday heard at JPY31,500-32,500/mt fob or JPY33,500-34,500/mt cfr Vietnam this week. The weekly Davis Index for the grade rose by JPY1,875/mt to settle at JPY31,875/mt ($304/mt) fas from the prior week amid limited deals. 


In the export market, the weekly index for #1 busheling (Shindachi) rose by JPY2,068/mt to JPY32,568/mt fob Japan. Hyundai bid for Japanese #1 busheling (Shindachi) scrap on Wednesday at JPY33,000/mt fob, with no deals heard. Bids for #1 HMS was at JPY29,500/mt. No bids were made for #2 HMS.

In the Kanto region, the Davis Index for #2 HMS settled at JPY27,750/mt($253/mt) fas port, up by JPY500/mt. Bids were heard at JPY27,500/mt fas. The index for the same grade rose by JPY648/mt to JPY28,625/mt fob Japan. Traders expect Japan export prices to increase further amid better demand. 


The weekly Davis Index for HS grade settled at JPY31,000/mt fas. Bids for the grade were at HS at JPY32,000/mt fob.

The weekly index for shredded settled at JPY32,025/mt fas, up by JPY2,275/mt from a week ago. Hyundai bids were heard at JPY32,000/mt fob. South Korean mills focused more on bulk cargo deals which are priced lower than containerized scrap due to which Hyundai raised bids by almost JPY2,500/mt fob from October 16.

Yards offered Japanese HMS 1&2 (50:50) Wednesday at $305-307/mt cfr Taiwan, up by $10 from the prior week, but no deals were heard. The index for the grade rose by $9/mt to settle at $303/mt cfr Taiwan. The index for the same grade increased by $7/mt for Vietnam to settle at $313/mt cfr, with no trades heard. Offers for the grade rose to $310/mt cfr Vietnam on Wednesday with no trades heard. Few trades were heard for HMS 1&2 (80:20) of US-origin at $315/mt cfr Vietnam in containers. 

Traders are optimistic of a recovery in demand as steelmakers are likely to ramp-up production in most Asian countries amid gradual rise in demand from infra and auto sectors.



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