Japanese ferrous scrap prices rose in both, domestic and export markets supported by increased bids in the monthly Kanto scrap export tender. The impact of a supply crunch and strengthened global finished steel prices also reflected on ferrous scrap prices. The June Kanto tender sold 21,000mt ferrous scrap with the average of winning bids at JPY26,360/mt ($245/mt) fas Tokyo Bay, up by JPY3,880/mt from JPY22,480/mt fas Tokyo Bay in May.


The weekly Davis Index for #2 HMS settled at JPY26,500/mt ($247/mt) fob Japan on Wednesday, up by JPY1,750/mt. Trades for #2 HMS concluded at JPY26,000-26,500/mt fob Japan but offers then rose to JPY27,000/mt fob Japan.

The Davis Index for busheling settled at JPY29,000/mt ($270/mt) fob Japan, up by JPY1,750/mt from a week ago. Demand for higher scrap grades remained comparatively lesser from overseas markets amid limited auto production activities. Thus, the price gap between high-grade scrap and low-grade scrap has narrowed. 


In small bulk cargoes, #2 HMS traded at $280-285/mt cfr Vietnam, up by $10/mt from the prior week. Offers of $290/mt cfr Vietnam were countered by bids at $275/mt cfr Vietnam.

The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $272/mt cfr Taiwan, up by $19/mt from the prior Wednesday. Trades concluded at $270-275/mt cfr Taiwan. On Wednesday, suppliers raised offers to $280/mt cfr Taiwan levels with no buyers interested at those prices. 

The index for HMS 1&2 (50:50) settled at $283/mt cfr Vietnam, up by $18/mt from the prior week. Vietnamese mills in South region booked HMS 1&2 (50:50) at $280-285/mt cfr Vietnam, up by $20/mt from the prior week. These mills have increased inquiries for US-origin scrap as a lower-priced alternative for Japanese scrap. 


The weekly index for #2 HMS settled at JPY25,500/mt fas Tokyo bay on Wednesday, up by JPY2,000/mt. The weekly index for shredded rose by JPY1,750/mt to JPY27,250/mt fas Japan. HS scrap traded at JPY28,000/mt fas Tokyo.



Japan’s domestic ferrous scrap prices continued to move up following rising export prices. Tokyo Steel announced a fifth price hike since the beginning of June. Effective June 11, the mill raised its domestic ferrous scrap prices by JPY1,000/mt for all scrap grades at all its plants barring Tahara. Prices have increased by a total of JPY3,000-4,000/mt since the beginning of June. 

Tokyo Steel’s bids for #2 HMS are at JPY25,500/mt ($237/mt) del to Utsunomiya plant in the Kanto region.  

Bids for #2 HMS remained at JPY23,000/mt and JPY24,500/mt delivered Kyushu and Okayama plants, respectively. Bids for busheling at Tahara and Utsunomiya were at JPY27,000/mt and JPY27,500/mt, respectively.




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