Scrap iron prices stay flat as market prices of H2 grade stand at 39,500 ~ 40,500 yen.
New export contracts to South Korea are limited due to a decline in domestic demand for steel products. Hyundai Steel reduced its bid price for Japanese scrap by 1,700 yen last week.
Tokyo Steel’s Tahara Plant also lowered the purchase price of all products by 1,000 yen from 25 March, and all Chubu Electric Furnace companies, including Daido Steel’s Chita Plant, revised their bid prices.
According to trader sources, an electric furnace steel-maker plans to increase production next month. However, the amount of raw materials procured is unlikely to increase proportionally because raw materials have already flowed into the mill due to the decrease in exports, with enough inventories having accumulated. The supply and demand of raw materials lack tightness.
Note: This article has been published in accordance with an article exchange agreement between Japan Metal Daily and SteelMint.
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