Japan’s domestic ferrous scrap prices continued to fall as Tokyo Steel reduced its bids thrice since June 30.
In the latest revision, the steelmaker has cut domestic ferrous scrap purchase prices by JPY500-1500/mt ($5-13/mt) effective July 4. Bids for ferrous scrap delivered to Utsunomiya dropped by JPY1500/mt, Tahara by JPY1000/mt and by JPY500/mt for rest three works – Okayama, Kyushu and Takamatsu.
Effective July 4, purchase prices for #2 HMS will be at JPY21,500/mt ($200/mt) delivered Utsunomiya works in Kanto region. Since June 19, bids for #2 HMS scrap delivered to Utsunomiya works have dropped by a total of JPY5,000/mt.
A steep downward curve in demand for high-grade scrap pressured their prices more compared to 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 JPY23,000/mt delivered to Utsunomiya works.
Bids for #2 HMS are at JPY24,000/mt delivered Kyushu and JPY23,500/mt delivered Okayama plant. Bids for busheling for deliveries to Tahara plant would be at JPY25,500/mt, down by JPY1,000/mt and JPY23,500/mt del Utsunomiya plant, down by JPY1,500/mt.
The steelmaker lowered bids for HS scrap by JPY1,500/mt to JPY25,000/mt del Tahara plant.
In the export market, Japanese ferrous scrap export prices continued to drop in step with drop-in bids announced by Hyundai and Dongkuk steel on Friday.
Imported ferrous scrap prices in Taiwan remained flat on Friday amid thin trades.
The Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $232/mt cfr Taiwan on Friday. Deals for #1 HMS were confirmed at $240/mt cfr. Demand for finished steel is still tepid in Taiwan, a seasonal phenomenon for summers, informed sources.
South American-origin HMS 1&2 (80:20) in FEUs was sold at $220/mt cfr Taiwan indicating a preference for lower-priced ferrous scrap by importers.
In small bulk markets, Japanese HMS 1&2 (50:50) was at $240-245/mt cfr Taiwan and busheling scrap offers were at $260-265/mt cfr Taiwan.
Feng Hsin steel in Southern region lowered domestic scrap purchase prices during the week by a total NTD600/mt to NTD6,900/mt delivered mill.