Japanese No2 HMS Scrap up by JPY 500 a tonne

January 25 2011 – Kanto region of Japan reports that No2 HMS scrap metal price benchmark up by JPY 500 a tonne

TEX reported that Japan's local ferrous scrap market further advanced by JPY 500 to JPY 36,500 to JPY 37,000 per tonne delivered at steelworks as of January 18th 2011 for the benchmark of No2 HMS prices in the Kanto area, where what electric steelmakers pay for local ferrous scrap vary from company to company.

In the Kanto area, Sanko Steel Co has raised its purchase prices of local ferrous scrap by JPY 2,000 per tonne this week to JPY 37,000 per tonne delivered for No2 HMS at its Hiratsuka works. Except Sanko Steel, several other electric steelmakers executed a purchase price increase of JPY 500 to JPY 1,000 per tonne for local ferrous scrap by January 18th 2011. Among those steelmakers are Asahi Industries Co, Oji Steel Co, JFE Bars & Shapes Corp, Jonan Steel Corporation, Daiwa Steel Corporation, Chiyoda Steel Co and Tokyo Tekko Co.

In contrast, some electric steelmakers keep their purchase prices unchanged of local ferrous scrap. Among them are Itoh Iron & Steel Co, Kanto Steel Limited and Mukoyama Steel Works Co.

Various electric steelmakers operating in the northern Kanto area or in the Tokyo Bay area enjoy arrivals of local ferrous scrap to meet consumption levels at their works, point out many ferrous scrap distributors.

In the Tokyo Bay area, meanwhile, ex yard prices of local ferrous scrap went up by JPY 1,000 per tonne by January 17th 2011. As of January 18th 2011, benchmarks of ex yard prices were JPY 36,500 to JPY 37,000 per tonne for No2 HMS and JPY 39,500 to JPY 40,000 per tonne both for P&S steel scrap and Shindachi (high grade material). There were sporadic cases of a price level at JPY 37,000 per tonne ex yard for cargoes to meet assigned ship loadings.

(Sourced from TEX Report Limited)