Tokyo Bay ferrous scrap prices on upward trend

Friday, 13 Aug 2010
TEX reported that Japan's FAS benchmark of local ferrous scrap prices has risen to JPY 27,500 per tonne ex yard for No 2 HMS in the Tokyo Bay area where FAS prices of ferrous scrap cargoes are edging up as if to meet the nation's ferrous scrap export market on the advance. The new FAS benchmark applies to intakes at principal sites such as the Kawasaki municipal and Funabashi Chuo wharves.

But a higher eastern market for local ferrous scrap than the western market precludes deals of westbound domestic shipments from the Tokyo Bay area. Besides, slack cargo movements of local ferrous scrap remain to affect arrivals at waterfront yards there. In fact, many of trading companies describe the arrivals as short on momentum, a situation where they have no option but to increase what they pay for the cargoes they require.

As to high grades of local ferrous scrap, the current FAS prices differ widely in the Tokyo Bay area, which reflects differences in various trading companies' export contract backlogs and outlets. They are settling down at a level of JPY 33,000 to JPY 33,500 per tonne ex yard for P&S steel scrap. By comparison, Shindachi is fetching a higher price level of JPY 33,500 to JPY 34,000 per tonne ex yard in the wake of increased inquiries from South Korea.