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Japan's Local Scrap Market Further Drops in Kanto Area
Japan's local ferrous scrap market further slid in the Kanto area in the third week of February when electric steelmakers, mainly those operating in the south there, reduced their purchase prices of local ferrous scrap one after another. Besides, more electric steelmakers limited intakes of local ferrous scrap at their works in the week under review.

Oji Steel Co reduced its purchase prices last week by Y1,000/ton for Shindachi and by Y1,500/ton for other grades last week for intakes at the company's Gunma works in the latter half of February. From Feb 17, Jonan Steel Corp (at its Kawaguchi works), JFE Bars & Shapes Corp (at its Misato works) and Chiyoda Steel Co (at its Ayase works) reduced their purchases by Y500/ton each for all grades. From Feb 18, JFE B&S (at its Kashima works) reduced its purchase prices by Y500/ton for specified grades. From Feb 19, Itoh Iron & Steel Co held down its purchase prices by Y500/ton for grades except turnings at its Tsukuba works, while Godo Steel Ltd and Tokyo Tekko held down their purchase prices by Y500/ton each for all grades at the former's Funabashi works and the latter's Oyama works. From Feb 20, Itoh Iron & Steel cut its purchase prices again by Y500/ton for all grades at its Tsukuba works when Kanto Steel Ltd acted likewise at its Tsuchiura works.

As of Feb 19, Tokyo Steel Mfg Co set the delivered price of No2 HMS at Y26,000/ton at its Utsunomiya works in the northern Kanto area, a high of No2 HMS prices there. As a result, delivered prices of around Y24,000/ton for No2 HMS were existing there at the time when its going delivered prices slid to Y24,000/ton or so at the works of electric steelmakers operating in the Tokyo Bay area.

Arrivals of local ferrous scrap equaled 100% or more of consumption levels on average last week at the works of various electric steelmakers operating in the Kanto area, according to ferrous scrap distributors. But the arrivals exceeded consumption volumes for some electric steelmakers as they had opted to reduce crude steel production under downward revisions of the initial production plans to meet delayed shipments of products.

As a result, moves to stop or limit intakes of local ferrous scrap prevailed among electric steelmakers last week, mainly those operating in the southern Kanto area, which brought strong signs of a further decline in the Kanto market for local ferrous scrap. The way ferrous scrap distributors see it, a price reduction of local ferrous scrap could prevail in the northern Kanto area, too, as if to follow a descending market in the southern Kanto area.
last modified : Thu 26 Feb, 2015 [16:40]
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