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Kanto No2 HMS Benchmark Down To Y28,500-29,500 Ex Steelworks
Japan's local ferrous scrap market further declined to Y28,500-29,500/ton ex steelworks as of June 10 for the benchmark of No2 HMS prices in the Kanto area, falling short of Y30,000/ton for the first time in four months. But there are no signs so far of the Kanto market hitting bottom. As a result, there are many voices that admit a bearish market outlook.

From June 10, top electric steelmaker Tokyo Steel Mfg Co reduced what the company pays for local ferrous scrap by Y2,000/ton for all grades at its Utsunomiya works in the Kanto area. As a result, the new delivered price there of No2 HMS is settled at Y30,500/ton. Until now, fellow electric steelmakers operating in the Kanto area have held down what they pay for local ferrous scrap to a level of Y20,000/ton delivered for No2 HMS, given Tokyo Steel's new Utsunomiya purchase price of No2 HMS as a high of its prices.

On their part, ferrous scrap dealers operating in the Kanto are reacting with moves to expedite deliveries in what they sell. As a result, various electric steelmakers enjoy arrivals of local ferrous scrap that equate with 100% or more of what is required at their works.

It is Japan's stagnant ferrous scrap export market for new deals that is largely held responsible for a falling Kanto market for local ferrous scrap, market observers point out. China's buyers indicate no purchasing intentions for ferrous scrap from Japan. Besides, South Korea's steelmakers look set to hold back on active purchases of Japanese ferrous scrap for a while.
last modified : Wed 16 Jun, 2010 [10:16]
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