Japanese ferrous scrap prices were bullish in both, the domestic and export markets amid tightened supply. Prices rose by JPY1,000-1,500/mt from the prior week. Supply remained scarce due to declined generation rate as manufacturing and demolition activities remain slow.
The weekly Davis Index for #2 HMS settled at JPY24,750/mt ($228/mt) fob Japan on Wednesday, up by JPY1,250/mt. Trades for #2 HMS concluded at JPY24,500-25,000/mt fob Japan.
The Davis Index for busheling settled at JPY27,250/mt ($251/mt) fob Japan, up by JPY1,250/mt from the prior Wednesday. The demand for high-grade Japanese scrap remained weak from overseas markets.
In small bulk cargoes, #2 HMS traded at $265-270/mt cfr Vietnam, up by $10/mt from the prior week. Bids were at $260/mt cfr Vietnam.
The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $253/mt cfr Taiwan, up by $9/mt from the prior Wednesday. Trades concluded at $250-255/mt cfr Taiwan. Taiwanese mills, however, slowed bookings on subdued finished steel demand because of the ongoing rains.
Japanese mills producing billets through blast furnaces offered material at $420-425/mt cfr Taiwan, up by $10-15/mt from the prior week.
The index for HMS 1&2 (50:50) settled at $265/mt cfr Vietnam, up by $10/mt from the prior week. Vietnamese mills in South region booked HMS 1&2 (50:50) from Japan at $260-265/mt cfr Vietnam, up by $5/mt from the prior week. Limited trades were reported as Japanese scrap remains bullish.
Offers for busheling in small bulk cargoes were at $285-290/mt cfr Vietnam or JPY27,000-27,500/mt fob Japan, up by JPY1,000/mt from the prior week. HS scrap offers at $285/mt cfr Vietnam this week.
The weekly index for #2 HMS settled at JPY23,500/mt fas Tokyo bay on Wednesday, up by JPY1,000/mt. The weekly index for shredded rose by JPY1,000/mt to JPY25,500/mt fas Japan. HS scrap traded at JPY26,000-26,500/mt fas Tokyo.
Japan’s domestic ferrous scrap prices continued to move up due to healthy demand. Steelmakers resumed operations this week. Tokyo Steel announced a second successive price hike in a week.
Effective June 4, Tokyo Steel raised its bids for domestic scrap delivered to Utsunomiya and Kyushu by JPY1,000/mt, while bids at other plants like Okayama, Tahara and Takamatsu centre increased by JPY500/mt.
Bids for #2 HMS were at JPY22,000/mt ($202/mt) delivered Utsunomiya plant in Kanto region, JPY21,500/mt delivered Kyushu and JPY20,500/mt del Okayama plants. Bids for busheling at Tahara and Utsunomiya were at JPY25,000/mt and JPY24,000/mt fob Japan, respectively.