Japan’s electric arc steelmaker Tokyo Steel announced a second successive price hike for domestic scrap purchase at its Utsunomiya plant. Tokyo Steel hiked ferrous scrap purchase prices for Utsunomiya works by JPY500/mt ($5/mt), however, the steelmakers held scrap prices flat for its other four plants in Japan. Purchase prices for Utsunomiya works increased by JPY1,000/mt from July 8.
Effective July 28, purchase prices for #2 HMS will be JPY22,500/mt ($213/mt) delivered Utsunomiya works in Kanto region, up JPY500/mt from the prior price revision on July 17.
Bids for busheling for deliveries to Tahara and Utsunomiya plants are at JPY25,500/mt and JPY24,500/mt del plant, respectively.
Bids for #2 HMS and busheling are at JPY23,500/mt and JPY25,000/mt delivered Kyushu, respectively, and JPY23,000/mt and JPY24,000/mt delivered Okayama mill, respectively.
The steelmaker has decided to revamp a continuous pickling line at its facility in Kurashiki, Okayama works and announced planned maintenance activities at all its plants. During this period, production at respective plants are likely to be halted. Utsunomiya plant will be under such schedule from July 27 to Aug 5 and Kyushu plant from 28 July to August 4.
According to Davis Index analysis, the region-wise average prices of all regions for all grades on Monday reported JPY100/mt decline. The daily national average index of #2 HMS delivered to Japan consumer Monday dropped to JPY22,500/mt, down by JPY100/mt from the JPY22,600/mt on Friday.
Ferrous scrap import prices rose on Monday on the back of bullish offers by supplier countries. These offers were supported by continuous buying by Turkish mills last week. Trades in other Asian markets have also picked up.
The Davis Index for containerized US-origin HMS 1&2 (80:20) rose by $2/mt on Monday to $245/mt cfr Taiwan from Friday. Taiwanese mills resumed scrap booking last week after a slump in demand during the summer season, steel demand continues to be subdued in the country. Deals for US and South American-origin HMS 1&2 (80:20) were heard at $245/mt cfr and $240/mt cfr Taiwan on Friday and Monday. Containerised shredded scrap offers from the US West Coast yards on Monday were around $260/mt cfr Taiwan, up by $5/mt from last week.
Turkish prices rose last week pushing the Davis Index for US-origin HMS 1&2 (80:20) up by $6/mt cfr Turkey on July 24 from July 20. Market participants are expecting a further rise in offer prices amid increased buying in other Asian countries and Turkey.
Japanese small bulk cargoes of HMS 1&2 (50:50) traded at $255-260/mt cfr Taiwan, while shredded sold at $275/mt cfr Taiwan. Japanese ferrous scrap export prices are also likely to increase this week surpassing JPY25,000/mt fob Japan for #2 HMS export, said a trader.