Sentiments
in the China's domestic scrap market remained low on the back of lower buying
interest.
In the
eastern part of the China, prices for scrap remain unchanged during the last
week. However, few small mills have made slight price increment to attract
deliveries. Market prices for HMS (over 6 mm thick) were hovering at $437-442/MT
(CNY 2,720-2,750/MT) Ex mills with 17% VAT.
According
to the market sources, “Scrap prices may soften in the coming 2 weeks due to
sufficient stock of raw materials with mills coupled with the drop in Re bar
demand.”
Further,
in the imported scrap market, offer prices also remained stable. No major deals
were heard being closed.
“Chinese
buyers are not eager to purchase while overseas suppliers are not willing to reduce
the offers. So, it is unlikely to see any improvement in the short term in the
import market with the uncertainty in the domestic steel market”, a market source
said.
Japan: Scrap export prices rise,
domestic prices firm
It
is reported that improved demand by Korean mini-mills has lifted Japanese scrap
exports. Suppliers are building the inventory in anticipation of further price
rise.
Last
week, a deal was concluded for Japanese H2 scrap to a Korean mini-mill at $329/MT
FOB (JPY 27,000/MT), up by $12/MT (JPY 1,000/MT) from a week ago.
According
to sources, the Korean mills have started collecting scrap for January
shipments and inquiries have become very active.
The
currency support has also made it easier for Korean mills to accept higher
prices. Japanese currency has been weakening and the Korean mills can lift
their bid prices.
Meanwhile,
Japanese domestic prices are holding firm. Tokyo
Steel Manufacturing has been holding its scrap purchase prices since November 20.
The H2 price at its Utsunomiya works is $303/MT (JPY 25,000/MT) Ex mills.
Prices are likely to revise by the coming 2-3 days.
CNY = Chinese Yuan
JPY = Japanese Yen
Leave a Reply