It is reported that ferrous scrap prices in
China are looking to be stabilize in the coming days on the back of new infrastructure
projects which are coming up. It will increase the demand for steel. Though Offers
have dropped from last week, market sources expect prices to remain stable. HMS
is being offered at $370-385/MT Ex mills i.e. down by $25/MT.
According to a major scrap buyer in China, “Suppliers
reduced the supply of scrap to the mills this week, expecting prices to rise
further, on the back of new infrastructure project approvals.”
“Beijing's approvals for development of rail
and road projects across the country last week brought a smile on steelmaker's
face and they are hoping for fresh demand for steel”, he added
Further, few cargoes were also being heard
imported.
Offers for US origin HMS1&2 (80:20) gained
to $420/MT CFR while Chinese buyers are hesitant to book the material over $320-330/MT
CFR.
Japanese
scrap export prices fall by $23-25/MT
Japanese ferrous scrap export prices fall
sharply on the back of falling domestic prices.
A Tokyo based buyer has purchased the scrap
at $332/MT FAS, down by $23/MT. Tokyo Steel, the country's largest electric arc
furnace operator and effective benchmark price-setter, reduced the scrap buying prices 5 times this month.
Current prices in all 5 plants are hovering
at $321-354/MT. Prices in Tahara works are at an all-time low, while any
further drop in prices to its other four works would take prices to their
lowest levels since 2009.
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