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|FAS Tokyo Bay Benchmark Flat At Y32,500-33,000 For No2 HMS|
Japan's FAS prices of locally available ferrous scrap in the Tokyo Bay area changed little at Y32,500-33,000/ton as of March 29 for the benchmark of No2 HMS prices for stocking at waterfront yards on main wharves when a high of FAS prices moved sideways as well at Y33,000/ton for No2 HMS cargoes to load assigned vessels. |
As to high grades of local ferrous scrap, benchmark FAS prices in the Tokyo Bay area leveled off, too, at Y35,000-35,500/ton both for P&S steel scrap and Shindachi as of March 29.
The present delivered price of No2 HMS is Y35,000/ton for seaborne arrivals at Tokyo Steel Mfg Co's flagship Okayama works in western Japan. As a result, the delivered price differs by Y2,000-2,500/ton from the current FAS prices of No2 HMS in the Tokyo Bay area, a price spread that still makes it difficult to profit by westbound domestic shipments from the Tokyo Bay area. But the FAS prices there look stable this week thanks to improved cargo movements of local ferrous scrap in the environment toward the end of fiscal 2011.
In the Tokyo Bay area, members with the All Japan Dockworkers' Union went on strike March 29 for two hours from starting time as part of the Shunto spring labor offensive, which stopped stevedoring operations there until 10:00 AM. As a result, intakes of ferrous scrap arrivals stopped at some waterfront yards.
It looks as if the atmosphere for ascending FAS prices has briefly eased in the Tokyo Bay area with the environment toward the end of fiscal 2011 besides the influence of a time-limited dockworkers' strike. But trading companies with captive waterfront yards expect the FAS prices to begin turning up again when a rush of ship allocations prevail for ferrous scrap exports, given lots of export backlogs and consecutive holidays between late April and early May.
|last modified : Wed 04 Apr, 2012 [12:45]|