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|Strong Signs Of Peak In Japan's No2 HMS Market For Export|
There are strong signs of a peak in Japan's No2 HMS market for export. The current quotations are moving sideways in a range of US$246-248/MT C&F. |
New export deals of No2 HMS face stagnant growth in quantity because purchasing intentions have yet to recover among various steelmakers in destinations such as South Korea and Taiwan. It appears overseas steel mills are poised to watch results of the export tender to be held Sept 29 by Japan's Kanto Tetsugen cooperative association of ferrous scrap dealers.
It is South Korea's top electric steelmaker INI Steel Co that continues to lead transaction prices in No2 HMS exports out of Japan to the rest of East Asia. The company's latest purchase of No2 HMS is settled at Y25,000/MT FOB. INI Steel was negotiating for another purchase at Y25,200/MT FOB. But part of Japanese supplies retracted offers to INI Steel after a Sept 27 announcement by Tokyo Steel Mfg Co on its purchase price increase for locally available ferrous scrap.
To Taiwan, No2 HMS is on offer from at around US$252/MT C&F. But no deal has shaped up so far as the going quotations of No2 HMS stand at around US$247/MT C&F. It is understood that Taiwanese electric steelmakers see less attractions in taking No2 HMS from Japan at more than US$250/MT C&F in view of the going prices for A3 grade ferrous scrap from Russia and No2 HMS from the USA.
Meanwhile, transaction prices are on the downside in East Asia for the A3 grade of Russian ferrous scrap. At present, negotiable prices are estimated at a level of US$262-263/MT C&F.
|last modified : Tue 04 Oct, 2005 [11:11]|