Japanese ferrous scrap prices fell by JPY1,500-2,000/mt ($14-18) on Wednesday amid weak domestic steel demand in the country. Participants are waiting for results of the Kanto tender scheduled next week for a clarity in price direction.
Few mills including Nippon Steel have announced production cuts upto 10pc amid oversupply concerns and a relative weak demand. Market participants had mixed opinions on price directions. Some traders indicated prices could reach
Japanese suppliers increased cargo offers to South Korea and Vietnam this week, where demand was higher than that in the domestic market. South Korean mills increased buying in anticipation of a price rise in coming days.
The weekly Davis Index for #2 HMS scrap lowered to JPY23,500/mt ($214/mt) fob Japan on Wednesday, down from JPY25,500/mt fob Japan the prior week.
The Davis index for Busheling settled at JPY26,000/mt fob Japan on Wednesday, down JPY2000/mt from the prior week.
In Japan’s domestic market, prices were driven by Tokyo Steel’s fifth successive price cut in last 10 days. Since Jan 25, prices have fallen by a total of JPY2,000-3,000/mt from the prior price level at all five of its plants. The recent price cut by JPY500-1000/mt ($5-9/mt) will be effective from Feb 6.
New prices for #2 HMS will be JPY22,500/mt del Tahara and JPY22,000/mt down JPY1,000/mt at Kyushu and Utsunomiya plants.
Bids for #2 HMS in Okayama and Takamatsu steel centre were at JPY21,500/mt and JPY20,500/mt, respectively.
The Davis Index for #2 HMS settled at JPY22,000/mt fas Japan, down by JPY1,500/mt from the prior week.
The weekly index for Busheling fell to JPY24,750/mt fas Japan from JPY26,500/mt fas Japan.
Market updates –
In Taiwan, Feng Hsin steel lowered its scrap purchase prices twice this week.
Feng Hsin’s purchase price of domestic HMS 1&2 (80:20) dropped by NT$300/mt effective Feb 6 to NT$6,900/mt delivered Taichung plant.
US-origin containerised HMS 1&2 (80:20) traded in the range $235-238/mt cfr Taiwan, down from the $248-250/mt cfr Taiwan price levels seen in the second half of last week.
In India, Australia origin HMS1&2 (80:20) traded at $270/mt cfr east coast. European origin HMS1&2 (80:20) traded at $275-280/mt cfr Nhava Sheva.
Containerized shredded traded at $280-282/mt cfr Nhava Sheva.Bids are likely to drop further in the coming days.
West Africa origin containerized HMS1&2 (80:20) traded at $270/mt cfr Goa.
Containerized shredded scrap traded at $290-292/mt cfr Chattogram, down from $300/mt cfr levels in the end January. South American HMS 1&2 (80:20) in containers traded at $275/mt cfr Chattogram.