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Osaka No2 HMS Benchmark at Y27,000-27,500 ex Steelworks
Japan's local ferrous scrap market in the Osaka area indicated Y27,000-27,500/ton delivered at steelworks as of Dec 17 for benchmark prices of No2 HMS when a high of its delivered prices hit Y28,000/ton or over. As a result, the No2 HMS benchmark was lower by nearly Y500/ton than last week. In the background, Tokyo Steel Mfg Co reduced what the company pays for local ferrous scrap by Y500/ton from Dec 13 at its Okayama works in western Japan.

With Tokyo Steel's Okayama purchase price reduction, several electric steelmakers operating in the Osaka area have reduced their purchase prices of local ferrous scrap, too, by Y500/ton each. Among them are Kishiwada Steel Co, Kubota Corp, Godo Steel Ltd and Shinkansai Steel Corp.

Arrivals of local ferrous scrap almost equal consumption levels on average at the works of various electric steelmakers operating in the Osaka area, according to ferrous scrap distributors. But they point out that some electric steelmakers face less arrivals than what they require for consumption in the repercussions of inadequate arisings of local ferrous scrap in the Osaka area.

Under the existing circumstances, the Osaka market for local ferrous scrap could continue downward for some time, market sources point out.

In the Himeji area, meanwhile, Godo Steel Ltd, Sanyo Special Steel Co and Yamato Steel Co reduced their purchase prices of local ferrous scrap by Y500/ton each from Dec 13. Also, JFE Bars & Shapes Corp acted likewise from Dec 16. As a result, Yamato Steel set the delivered price of No2 HMS at Y25,500/ton as of Dec 17 for overland arrivals at its Himeji works, in which a freight rate subsidy of Y500/ton applied separately. With the four electric steelmakers' purchase price cuts, benchmark prices of No2 HMS in the Himeji area slid to Y25,500-26,000/ton delivered at steelworks as of Dec 17.

In the Okayama area, Tokyo Steel set the delivered price of No2 HMS at Y26,500/ton as of Dec 17 for overland arrivals at its Okayama works. JFE Bars & Shapes Corp has cut what the company pays for local ferrous scrap by Y500/ton, too, as if to follow what Tokyo Steel executed at its Okayama works from Dec 13.
last modified : Thu 25 Dec, 2014 [15:15]
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