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Kanto No2 HMS Benchmark Unchanged at Y29,500 ex Steelworks
Japan's local ferrous scrap market in the Kanto area changed little at around Y29,500/ton delivered at steelworks as of Nov 28 for benchmark prices of No2 HMS when its delivered prices stood in the range of Y29,000-30,000/ton.

Among electric steelmakers operating in the Kanto area, Sanko Seiko Co has increased what the company pays for local ferrous scrap by Y500/ton for intakes this week at its Hiratsuka works. As a result, the company sets the new delivered price of No2 HMS at a maximum Y29,000/ton. But other electric steelmakers keep their purchase prices unchanged of local ferrous scrap.

Pricing leader Tokyo Steel Mfg Co reduced what it pays for local ferrous scrap by Y500/ton from Nov 29 at its three facilities in western Japan when no revision of the purchase prices took effect at its Utsunomiya works in the Kanto area. As a result, the price reduction is expected to have little influence on the Kanto market. But more market sources are taking a prudent view of how the Kanto market develops in December whereby an atmosphere for a future upswing has subsided.

Arrivals of local ferrous scrap last week almost equaled 100% of consumption levels on average at the works of various electric steelmakers operating in the Kanto area, according to ferrous scrap distributors. On the other hand, cargo movements of heavy scrap last week turned out no better than what they were in the final week of October, ferrous scrap dealers point out.

Meanwhile, there are forecasts that trading companies will show pervasive moves to reduce what they pay for stocking local ferrous scrap at captive waterfront yards in the Tokyo Bay area as an aftermath of Tokyo Steel's price reduction of local material from Nov 29 at its Okayama works in western Japan. As market observers see it, a wait-and-see atmosphere can further strengthen in the Kanto market for local ferrous scrap due to a sense of vigilance on its prospects.
last modified : Fri 05 Dec, 2014 [10:04]
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