Domestic and export ferrous scrap prices in Japan were flat to up this week as offers were limited due to holidays. Tokyo Steel’s domestic scrap prices were flat from the prior day with #2 HMS at JPY43,000/mt ($416.5/mt) del Tahara plant on Wednesday.
With no Turkish ferrous scrap deals heard this week many Asian buyers resisted rising offers. Traders expect bids to fall. Market participants indicated that softening of iron ore prices in China and a fall in HRC prices is likely to have a bearing on ferrous scrap prices. With Japanese New Year Holidays extending until to Jan 5, most exporters have limited offers. In Turkey, the daily Davis Index for HMS 1&2 (80:20) Tuesday settled at $472.25/mt cfr flat from Monday.
The weekly Davis Index for Japanese #2 HMS was flat at JPY42,750/mt ($414/mt) fas amid holidays and lower bids. In the export market, the weekly index for the grade was flat at JPY43,750/mt fob Japan.
A few offers for Japanese #1 busheling (Shindachi) rose to JPY48,000/mt fob. The weekly index for the grade increased by JPY750/mt at JPY45,750/mt fas and up by JPY500/mt at JPY47,500/mt fob Japan. Offers for the grade rose on limited supply. No deals were heard in export this week with importers finding rising offers unviable.
China plans to do away with the 2pc import duty on ferrous scrap, and revive its most-favoured-nation (MFN) system from Jan 1. Japan, along with Russia stand to benefit from the favoured nation status. This could lead to a surge in exports from Japan supporting prices in January, said traders.
In the Kanto region, the Davis Index for #1 HMS was flat at JPY43,875/mt fas from the prior week. The index for the same grade rose by JPY125/mt to JPY45,125/mt fob Japan.
The weekly Davis Index for HS and shredded grade rose by JPY625/mt and JPY125/mt to JPY45,625/mt fas and JPY44,875/mt fas, respectively amid limited supply and in sync with the increase in #1 busheling prices.
Yards offered Japanese HMS 1&2 (50:50) at $465/mt cfr Taiwan this week. The index for the grade was flat at $458/mt cfr Taiwan. In Vietnam, the index for Japanese HMS 1&2 (50:50) was flat at $463/mt cfr, with no trades heard. Due to holidays, no offers were active while importers lowered bids as they found current import prices unworkable.