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Kanto Ferrous Scrap Market Is Flat with Staying on The Sidelines
= The benchmark price of No.2 HMS ex steelworks is Y 35,000 to 35,500 =
The Kanto ferrous scrap market is flat with staying on the sidelines. Following the price reduction of Utsunomiya Plant of Tokyo Steel, the price decline by Y 1,000 spread after February 7. After that, the benchmark price ex steelworks in the area did not change drastically.

As a result of that, as of February 16, the benchmark price of No.2 HMS ex steelworks in the Kanto area was Y 35,000 to 35,500, unchanged from a week ago. The target of high price is Y 36,000. The average winning bid at the tender of Kanto Tetsugen Cooperative Association, which was held on February 9, marked Y 34,750 FAS, which was below the average price ex steelworks. But the average winning bid was above FAS Tokyo Bay price, which had declined in advance, and it restrained the decline of FAS price. The Kanto market was stable last week or the week starting from February 12.

Although the ratio of arrival of ferrous scrap to the electric steelmakers in the area was mainly around 95 to 100%, the quantity of arrival of ferrous scrap was declining largely, according to the supplier. Recently many steelmakers procured the arrival of ferrous scrap, which is appropriate for the quantity of usage, and some electric steelmakers stopped to accept arrival of ferrous scrap. It is pointed out that the supply and demand balance became tight mainly in Tokyo Bay area, thanks to the implementation of Kanto Tetsugen Cooperative Association, which has many ferrous scrap business operators as the member. In fact, some electric steelmakers in Tokyo Bay area already implemented price increase by offering private price.

Although it is expected that the cargo movement would improve by the special factor at the end of month, the demand for shiploading, such as Kanto Tetsugen Cooperative Association, would keep high level. There is the possibility that the demand and supply balance in the area would become tight further, mainly in south Kanto area, which is close to harbor. Some suppliers pointed out that Kanto market would intensify the sentiment of staying on the sidelines, as the market participants watched the trend of new export deal after Lunar New Year holiday and the price trend of Tokyo Steel.
last modified : Fri 23 Feb, 2018 [09:56]
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