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FAS Tokyo Bay Benchmark Down to Y23,500 for No2 HMS
Japan's FAS Tokyo Bay prices of locally available ferrous scrap edged down to around Y23,500/ton as of Feb 23 for benchmark prices in what the nation's trading companies pay for stocking No2 HMS at captive waterfront yards in the Tokyo Bay area. At the time, many of trading companies' purchases prices were Y23,000-23,500/ton for No2 HMS, while the price level of Y24,000/ton was gradually disappearing for its cargoes to load designated vessels. Besides, there were even cases of low purchase prices at Y22,000/ton or so for what almost amounted to the rejection of new intakes for stocking.

By comparison, benchmark FAS prices of high-grade ferrous scrap moved sideways in the Tokyo Bay area as of Feb 23 when they indicated Y26,000-26,500/ton both for P&S steel scrap and Shindachi. In the background, there are shiploadings under way for new exports of the two high grades.

In the Tokyo Bay area, the shiploading volume of ferrous scrap exports is estimated to total more than 60,000 tons this week. On the Odaiba site there, shiploading operations are under way, too, for export cargoes from the Kanto Tetsugen cooperative association of ferrous scrap dealers. As a result, shiploading demand for ferrous scrap exports is holding steady so far on principal wharves.

At present, the shiploadng volume of ferrous scrap exports stands at a high level in the Tokyo Bay area. But there is a possibility that export shipments of ferrous scrap will come down there from March onward, market observers point out. On their part, trading companies are considering a further reduction in what they pay for stocking local ferrous scrap at captive waterfront yards on the argument that the Kanto market for local ferrous scrap has signs of a further decline.

In the Kanto area, Tokyo Steel Mfg Co set the delivered price of No2 HMS at Y26,000/ton at its Utsunomiya works as of Feb 23, a delivered price that was higher than the corresponding one at the company's Okayama works in western Japan. As a result, there are forecasts that the company will reduce what it pays again for local ferrous scrap at its Utsunomiya works in the immediate future.
last modified : Fri 27 Feb, 2015 [09:50]
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