Tokyo Steel Manufacturing, Japan’s leading EAF mill, announced its third cut to its local scrap buying prices inside a week, albeit trailing steeper drops in the seaborne market.
Bids for various scrap grades were cut by Yen 500/mt ($4.60/mt) for its Okayama mill, effective March 17, while prices at its other three
mills located at Tahara, Kyushu, and Utsunomiya, were unchanged.
Deliveries for H2 scrap to its Utsunomiya mill in the Kanto region was held unchanged at Yen 41,500/mt.
The company’s prices continue to closely follow the seaborne market on its downtrend, amid cheaper priced deals being concluded March 16.
A South Korean mill concluded a deal March 16 for a combined to 22,500 mt, basis H2 price of 41,000/mt FOB, Yen 2,500/mt lower than the buyer’s price ideas a week ago.
“It is surprising to see Tokyo Steel leaning on the conservative side for their reductions — usually they try to maintain their bids below seaborne ones,” a South Korean trader said. “Perhaps there is local
demand there and their mills are just trying to maintain healthy inflows.”
H2 FAS collection prices at Kanto docks also edged lower March 16, touching Yen 39,500/mt, down from Yen 42,000-43,000/mt a week ago.
In the regional market expectations remained soft, with buyers in Taiwan and Vietnam heard to be staying cool towards falling offers.
“Buyers would be too afraid to buy if prices are dropping fast,” a Vietnamese trader said. “They want to catch the best deals they can.”
Disclaimer: this article is from the SBB STEEL MARKET DAILY, the copyright belongs to the original author, and only represents the original author's viewpoint.
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