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Will Japanese Domestic Scrap Prices Witness Correction ?

Will Japanese Domestic Scrap Prices Witness Correction ?
Mining News Pro - Trade participants are eyeing that Japanese scrap prices could have achieved temporary peak and could observe downward trend.
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According to Mining News Pro -Trade participants are eyeing that Japanese scrap prices could have achieved temporary peak and could observe downward trend. As per reports, domestic scrap prices have showed slight correction in some of the regions however market direction remains uncertain. Domestic H2 scrap prices in Tokyo still assessed at JPY 37,000-37,500/MT (USD 328-333).

While market awaits for the next price revision of Tokyo Steel which remains the key factor in the scrap market, moreover in the Kanto region, next H2 shipments are scheduled for 2500 MT each on 27th and 29th Oct’18 which is likely to decide clear market direction.

Market awaits Tokyo Steel price revision - Japan’s leading EAF steelmaker Tokyo steel has kept steel prices unchanged for Nov’18. The company kept finish steel prices unchanged for straight 9 months, thus to improve profitability it is likely to cut ferrous scrap prices. As per reports, Tokyo steel likely to observe some adjustment sooner or later as its scrap prices are higher than international prices. However, H2 prices stand at JPY 37,500/MT at Utsunomiya plant in the Kanto region since 19th Sept’18.

South Korean importers turn silent for Japanese scrap - Since past couple of weeks, South Korean importers have reduced the purchases from Japan. Port owners in Nagoya region observed surplus inventories available due to declined exports to South Korea. Many of the South Korean steelmakers are now forecasting that Japanese scrap export prices will decline in the near future which are solid at JPY 36,000-36,500/MT, FoB.

Japanese local scrap demand remains strong - Although few EAF steelmakers are witnessing electricity issues, their production volumes are expected to maintain at current levels. For central region, production volumes are expected to cross 500,000 MT levels. Thus, supply-demand situation for processed scrap likely to remain tight for time being. Trade volumes may remain active without slowing down of supply and demand.

Japan’s largest rebar producer expects global scrap prices to remain firm - Amid bullish local finish steel demand for 2020 Olympic construction activities, Japanese scrap prices are likely to stay strong despite marginal correction. Japan’s largest rebar maker Kaye Steel said, “Although Japanese scrap prices are uniquely high, world’s economy is still unclear on USA-China trade war. China’s environmental regulations and production cuts likely to keep global scrap demand high resulting in international scrap prices not likely to decline.

~Inputs from Japan Metal Daily & Steel Daily

 


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