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| Scrap Price Cuts, Suspended Scrap Cargo Intakes Pervade Tokyo Bay Yards |
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Ex yard price reductions of locally available ferrous scrap by Y1,500-3,000/ton and suspended intakes of ferrous scrap cargoes have pervaded waterfront yards in the Tokyo Bay area because more electric steelmakers operating in the Kanto area have opted to stop intakes of local ferrous scrap at their works. As a result, benchmark ex yard prices are down to Y16,000-17,000/ton for No2 HMS, 19,000-20,000/ton for new production scrap, and Y20,500-22,000/ton for P&S scrap. At the Kawasaki municipal wharf, a high of Y20,000/ton ex yard was quoted for No2 HMS at some yards in the first half of last week. But the quotation was held down by Y5,000 Dec 5 to Y15,000/ton for the virtual rejection of business. Then, various yard operators (largely trading companies) reacted with ex yard price cuts of local ferrous scrap suspended intakes of ferrous scrap cargoes one after another. With ex yard prices on the decline in the Tokyo Bay area, there are forecasts that arrivals of local ferrous scrap will go up further at the works of various electric steelmakers operating in the Kanto area as ex steelworks prices of local ferrous scrap become higher than ex yard prices. As a result, the course of things is likely to change again in the Kanto market for local ferrous scrap, market sources believe. In the first week of December, No2 HMS came under a pervasive Y17,000-19,000/ton ex steelworks in the Kanto area. At present, what electric steelmakers pay for No2 HMS delivered ranges from a low of Y17,000-17,500/ton to a high of Y18,500/ton or beyond, with the benchmark standing at Y18,000/ton. |
| last modified : Thu 11 Dec, 2008 [11:25] |
