Japanese ferrous scrap export prices dropped by JPY500-1250/mt ($5-12/mt) amid oversupply of scrap and weak domestic demand. Domestic scrap prices, though, remained flat over the week. Construction activities in Japan’s have been halted to contain the spread of COVID-19. 

 

Additionally, in the last ten days Japanese currency depreciated to trade at JPY107.55 against the US$ on March 18, from JPY102.3 on March 9.

 

Japan exports

The weekly Davis Index for #2 HMS settled at JPY22,000/mt ($204/mt) fob Japan on Wednesday, down by JPY1,250/mt. Trades with mills in Vietnam and South Korea for #2 HMS concluded at JPY22,000-22,500/mt fob Japan. A few yards offered #2 HMS at JPY22,500-23,000/mt fob Japan with no takers at those levels.

 

The Davis Index for busheling settled at JPY24,750/mt ($247/mt) fob Japan on Wednesday, down by JPY1250/mt from the prior Wednesday. Japanese scrap suppliers offered #2 HMS at $248-252/mt cfr Taiwan. 

 

The Davis index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $238/mt cfr Taiwan, down by $5/mt. Taiwanese mills bids for the grade at $235/mt cfr Taiwan with offers at $240-245/mt cfr Taiwan. A few trades were reported at $238-240/mt cfr Taiwan.   In Taiwan, traders hope that ferrous scrap prices are unlikely to drop further due to increased freight rates. Availability of containers is expected to increase in the near term as Chinese trades have started picking up.

 

Japanese HMS 1&2 (50:50) in small bulk cargoes was offered at $245-250/mt cfr Vietnam, with bids at $240//mt cfr Vietnam. The index for HMS 1&2 (50:50) settled at $245/mt cfr Vietnam, down by $5/mt from the prior week. Japanese HS and busheling scrap in bulk cargoes was offered at $265/mt cfr Vietnam. Japanese yards are paying JPY21,000-21,500/mt fas Tokyo bay for collection of #2 HMS and the index for #2 HMS settled at JPY21,250/mt fas Tokyo bay, down by JPY500/mt from the prior week. Trades for containerised shredded and HS concluded in the range of JPY23,500-23,750/mt fas Japan, down by JPY250/mt from the prior week. 

 

Japan domestic 

 

After lowering scrap purchase prices thrice this month, with the last revision effective March 12, Tokyo Steel has held its domestic ferrous scrap purchase prices flat. Prices for #2 HMS were at JPY19,000/mt del Kyushu plant. While the prices for #2 HMS in Utsunomiya, Tahara, Okayama and Takamatsu were at JPY19,500/mt, JPY20,500/mt, JPY19,000/mt and JPY18,000/mt, respectively. Bids for busheling were at JPY22,500/mt del Tahara and JPY21,500/mt del Utsunomiya.

 

($1=JPY107.35)

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