ASIA FERROUS SCRAP: Mixed signals clouding outlook for prices

Falling prices for Japanese ferrous scrap against the backdrop of increasingly costlier materials from the United States in Taiwan and Vietnam are clouding the outlook for the Asian market for the steelmaking raw material.

The Kanto Tetsugen cooperative, which brings together over 80 scrap dealers in Japan’s Tokyo area, concluded its July auction of H2 scrap on Wednesday at ¥28,060 ($259) per tonne fas Tokyo Bay, down ¥907 per tonne compared with its previous auction. Two successive bidders each secured 10,000 tonnes of H2 scrap at that price. The lower auction price had been expected by key market participants, who pointed out that Japan’s domestic scrap market was extremely depressed due to the weak downstream steel market. This has led many Japanese producers of billet to start channeling their cargoes to Southeast Asia instead of the domestic market. Vietnam Fastmarkets’ price assessment for bulk shipments of...

Published

Paul Lim

July 12, 2019

10:37 GMT

Singapore