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FAS Tokyo Bay Benchmark Stable at Y24,000 Level for No2 HMS
Japan's FAS Tokyo Bay prices of locally available ferrous scrap held stable at around Y24,000/ton as of Feb 18 for benchmark prices in what the nation's trading companies pay for stocking No2 HMS at captive waterfront yards in the Tokyo Bay area. As a result, benchmark FAS prices of No2 HMS changed little from what were in the week before.

As of Feb 18, low FAS prices of Y23,000-23,500/ton applied to trading companies' purchases of No2 HMS for stocking at captive waterfront yards on main wharves. But there were voices that pointed out less than favorable arrivals for purchase prices at Y23,500/ton FAS or under. Meanwhile, there were cases of purchase prices at Y24,000/ton FAS or over for No2 HMS cargoes to load designated vessels.

In the Tokyo Bay area, benchmark FAS prices of high-grade ferrous scrap, too, changed little as of Feb 18 when they indicated Y26,000-26,500/ton both for P&S steel scrap and Shindachi.

The FAS Tokyo Bay market for local ferrous scrap still bears signs of a future decline under downward pressure from the export and domestic fronts. South Korea's Hyundai Steel Co has made a lower bid of Y22,800/ton FOB than the previous one this week to purchase No2 HMS anew from Japan. Domestic electric steelmakers operating in the Tokyo Bay are show moves to reduce their purchase prices of local ferrous scrap. Besides, there is a possibility that pricing leader Tokyo Steel Mfg Co will reduce what the company pays again for local ferrous scrap at its Utsunomiya works in the Kanto area.

Some market sources, though, have expectations that a series of vessel allocations to export cargoes from the Kanto Tetsugen cooperative association of ferrous scrap dealers can serve to stop a downward undertone in the FAS Tokyo Bay market for local ferrous scrap. Kanto Tetsugen's shiploading schedules include 5,000 tons for the February contract and nearly 9,000 tons in total in the first week of March in addition to the shiploading of 10,000 tons under way this week.
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last modified : Wed 25 Feb, 2015 [10:45]
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