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|Kanto Market: Price Reduction by Y 1,000 from February 7 Spread|
|= The benchmark price of No.2 HMS ex steelworks declines to Y 35,000 to 35,500 =|
The Kanto ferrous scrap market declined further from February 7. After Utsunomiya Plant of Tokyo Steel decided to reduce the purchase price on February 6 by Y 1,000 from the next day, each electric steelmakers in the area, except the manufacturers who had the term contract, followed Tokyo Steel and implemented price reduction.|
Many electric steelmakers reduced the price by Y 1,000. The range of price reduction varied from Y 500 to 1,500 depending on items. Kashima & Tobu Works of JFE Bars & Shapes reduced the price of No.2 HMS by Y 500 all together.
As a result of that, as of February 7, the benchmark price of No.2 HMS ex steelworks in the Kanto area was Y 35,000 to 35,500, down by Y 1,000 from a week ago, and the high price was around Y 36,000. The recent benchmark price level was same as that of the beginning of the year.
The ratio of arrival of ferrous scrap to the electric steelmakers in the area was mainly around 95 to 100%, according to the supplier. Because Tokyo Bay FAS price declined in advance, the arrival of ferrous scrap to electric steelmakers in south Kanto area, which were close to Tokyo Bay area, was relatively active so far. But the arrival of ferrous scrap to electric steelmakers in north Kanto area was not so active.
Triggered by the price reduction of Tokyo Steel, the sentiment of weariness to the market intensified. As a result of that, the cargo movement in the market improved, and as of February 7, the arrival of ferrous scrap to the north Kanto area improved. Many market participants expected that Kanto market would decline further, and the market is still filled with bearish sentiment.
|last modified : Thu 15 Feb, 2018 [09:46]|