Japan’s domestic ferrous scrap prices continued their downward trend on Wednesday. Tokyo Steel reduced its bids twice in last three days by a total of JPY500-1,500/mt. This is the fourth price cut since June 25.
Effective July 2, bids for scrap delivered to Tahara works were cut by JPY1,000/mt and by JPY500/mt at three other plants — Okayama, Kyushu and Takamatsu steel centre. The steelmaker lowered bids at Utsunomiya plant by JPY1000-1500/mt .
After the latest revision, purchase prices for #2 HMS are at JPY23,000/mt ($214/mt) delivered Utsunomiya works in Kanto region, down JPY1,000/mt from June 30. Since June 12, bids for #2 HMS scrap delivered to Utsunomiya works have dropped by JPY3,500/mt.
A sharp drop in demand for higher scrap grades has pressured their prices more over medium grade scrap in the domestic market. Oversupply of HS scrap equivalent to P&S in the Kanto region has weighed down bids by JPY1,500/mt to JPY24,500/mt delivered to Utsunomiya works.
Bids for #2 HMS would be at JPY24,500/mt delivered Kyushu and JPY24,000/mt delivered Okayama plant. Bids for busheling for deliveries to Tahara and Utsunomiya plants would be at JPY26,500/mt and JPY25,000/mt del plant, respectively.
According to Davis Index analysis, average prices of scrap at Kyushu, Okayama, Tahara, Takamatsu and Utsunomiya have declined by JPY600/mt for all grades on Wednesday.
Imported ferrous scrap prices in Taiwan fell further on Wednesday. To boost sales, US sellers lowered their offers for HMS 1&2 (80:20) to $230-235/mt cfr Taiwan.
The daily Davis Index for containerised US-origin HMS 1&2 (80:20) fell by $3/mt to $233/mt cfr Taiwan on Wednesday. Few deals were heard for Australian-origin containerised HMS 1&2 (80:20) at $220/mt cfr Taiwan. Limited bookings are expected in July due to summer months as per importers.
In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $250-255/mt cfr Taiwan, down by $5-10/mt from Thursday. Taiwanese manufacturers are expecting a further drop in Japanese ferrous scrap offers with Tokyo steel lowering purchase prices.
Feng Hsin steel in Southern region lowered domestic scrap purchase prices during the holidays and on Monday by total NTD600/mt from a week ago to NTD6,900/mt delivered mill.