Tokyo Steel Manufacturing, Japan’s leading EAF mill, announced a second cut inside a week for its ferrous scrap bids effective March 13, following stronger supply in Japan, sources said.
It cut bids for various scrap grades by Yen 500/mt ($4.60/mt) for its Tahara, Okayama and Utsunomiya mills, while prices at its Kyushu mill remained unchanged, the company said.
Deliveries for H2 scrap to its Utsunomiya mill in Kanto region rise to Yen 41,500/mt following the adjustment.
Amid softening domestic bids heard within Japan, in part due to stronger supply of local material flows, some sources said the cuts by Tokyo Steel were smaller than falls in seaborne prices.
“I suspect there's a further reduction coming but it depends on how much the seaborne market corrects down too,” a Japanese trader said. “Taiwanese offers have already fallen $30/mt just this week. And we're not hearing anything from Vietnam.”
Regional trading for Japanese scrap was also relatively muted as buyers in Vietnam and Taiwan adopted a wait-and-see approach. A major South Korean buyer, however, made purchases of H2 material at Yen 42,000/mt on an FOB basis, marking a Yen 1,500/mt fall from a week ago.
Meanwhile, yards in the Kanto region were cutting collection prices too, with H2 FAS falling to Yen 40,000-41,000/mt on March 12, from around Yen 43,000/mt a week ago.
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