ASIAN FERROUS SCRAP MARKET ROUND UP -
Chinese provincial quotations fell on average by 2.3 percent in April. Domestic
traders report that demand for finished steel products has not picked up
significantly. Inventories are rising to record levels and market prices are
falling, despite high production costs. Baosteel has elected to keep official
May ex-works prices flat. MEPS’ sources are divided over the direction of
domestic scrap transaction values in May-June period.
Negative price movements were witnessed in two of the four Indian regions
researched. The usual, seasonal upturn in end-user demand for finished steel
products has not occurred. Market sentiment has been unsettled by the
uncertainty surrounding the new BIS quality controls, volatile sponge iron
selling figures and a hike in electricity tariff charges. Foreign brokers had
mixed success in preventing import quotations declining.
Japanese electric furnace steelmakers issued lower purchasing figures in April.
Tokyo Steel Manufacturing, a bellwether for the domestic steel industry, has
reduced its HMS2 purchasing prices at all five subsidiaries. The adjustment was
executed in three phases. Other electric steel producers have responded with
similar sized price decreases. In the Tokyo Bay area, benchmark FAS prices for
HMS2 graded material stood at Yen32,000-32,500 per tonne in week 16. Exporters
based in Chubu, Kansai and Kanto expect the downward price trend to continue in
MEPS - Ferrous
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