Japan’s domestic ferrous scrap prices continued to trend down from last week. Tokyo Steel reduced its bids by JPY500-1,000/mt effective June 30 for some of its plants. This is a third price announced for ferrous scrap purchases from June 25.
Effective June 30, bids at Utsunomiya were decreased by JPY1,000/mt and by JPY500/mt at Tahara plant. Prices at other three works, Okayama, Kyushu and Takamatsu centre, however, remained unchanged.
After the latest revision, purchase prices for #2 HMS will be at JPY24,000/mt ($224/mt) delivered Utsunomiya works in Kanto region, down JPY1,000/mt from June 26. Since June 12, bids for scrap delivered to Utsunomiya works dropped in total by JPY2,500/mt.
Bids for #2 HMS were at JPY25,000/mt delivered Kyushu and JPY24,500/mt delivered Okayama plant. Bids for busheling for deliveries to Tahara and Utsunomiya plants were at JPY26,000/mt and JPY27,500/mt del plant, respectively.
According to Davis Index analysis, average prices of scrap at Kyushu, Okayama, Tahara, Takamatsu, Utsunomiya have declined by JPY300/mt for all grades on Monday.
On Monday, the daily national average index of #2 HMS delivered to Japan consumer was at JPY24,300/mt, down by JPY300/mt from the JPY24,600/mt on Friday.
The indexes dropped by JPY300/mt for #1 HMS, shredded, #1 busheling and HS scrap and settled at JPY25,460/mt, JPY26,000/mt and JPY26,500/mt del Japan consumer, respectively.
Imported ferrous scrap prices in Taiwan inched up on Monday. Limited trades were reported. US sellers were unwilling to lower their offers and thus mills prefered Japanese scrap.
The Davis Index for containerised US-origin HMS 1&2 (80:20) rose by $2/mt to $244/mt cfr Taiwan from Friday. Few deals were heard at $245/mt cfr for US-origin HMS 1&2 (80:20).
With the Dragon boat festival coming to an end, bookings are likely to pick up soon. Market participants expect prices to fall further in July driven by a decline in Turkish bulk prices which fell by almost $7/mt to $251.5/mt cfr last week.
Feng Hsin steel in Southern region is heard to have lowered domestic scrap purchase prices during the holidays.
In small bulk markets, Japanese HMS 1&2 (50:50) traded at $255/mt cfr Taiwan, down by $5/mt from Thursday. Taiwanese manufacturers are expecting a further drop in Japanese ferrous scrap offers with Tokyo steel lowering purchase prices.