Ferrous scrap’s domestic and export prices trended up in Japan this week. Tokyo Steel raised domestic ferrous scrap on Tuesday for the seventh time in December. 

 

Increased buying in Turkey coupled with bullish offers from scrap exporting countries has led market participants to expect a further rise in global ferrous scrap prices. In Turkey, the daily Davis Index for HMS 1&2 (80:20) settled at $380/mt cfr on Tuesday, up by almost $5/mt. Market participants expect a further rise in global prices amid container and ferrous scrap shortage.

 

Asian countries are cautious, but market participants do not foresee a fall in December prices, rather expecting a further boost after Kanto tender on Thursday, Dec 10, while local mills are worried about how to maintain profit margins due to rising input cost.

 

The weekly Davis Index for #2 HMS rose by JPY1,875/mt to settle at JPY35,250/mt ($338/mt) fas amid rising offers. In the export market, the weekly index for the same grade rose by JPY1,500/mt to JPY36,250/mt fob Japan. Traders indicated prices are expected to rise this week by another JPY1,000/mt after Kanto bids. No deals were heard this week as exporters did not have enough quantities to export at current prices and offers rose before deals could conclude.

 

In the Kanto region, the Davis Index for #1 HMS settled at JPY36,500/mt fas port, up by JPY2,000/mt. The index for the same grade rose by JPY1,875/mt to JPY37,375/mt fob Japan, with no deals reported at index price.

 

Offers for Japanese #1 busheling (Shindachi) rose to JPY40500/mt. A deal was heard at JPY39,000/mt fob earlier this week. The weekly index for the grade settled up by JPY1,250/mt at JPY38,250/mt fas, and up by JPY1,786/mt at JPY39,826/mt fob Japan. Market participants closely analysing Turkish deals indicated that prices are not expected to fall till January.

 

The weekly Davis Index for HS and shredded grade rose by JPY1,750/mt and JPY1,375/mt to JPY38,250/mt fas and JPY37,875/mt fas, respectively. 

 

Yards offered Japanese HMS 1&2 (50:50), Wednesday, at $375-380/mt cfr Taiwan, up by $10-15/mt from the prior week. The index for the grade rose by $14/mt to settle at $374/mt cfr Taiwan. A deal for the grade was heard last week at $365/mt cfr. In Vietnam, the index for Japanese HMS 1&2 (50:50) increased by $15/mt to settle at $385/mt cfr, with no trades heard. Offers for the grade rose to $390/mt cfr Vietnam on Wednesday. 

 

($1=JPY104)

 

 

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