By Anil Mathews (ScrapMonster Author)

April 21, 2016 07:58:45 AM

TOKYO (Scrap Monster): The ferrous scrap prices remained buoyant as demand continued to remain extremely strong amidst rising steel prices. Traders in East Asian countries reported strong overseas demand for scrap materials during the week. The rise in demand has sent scrap prices higher.

According to sources, Japanese H2 scrap prices were up by Yen 3,500/mt over the previous week to Yen 26,500/mt FOB Tokyo Bay. The South Korean steel maker Hyundai Steel is reported to have booked 40,000-50,000 mt of Japanese scrap, ahead of the upcoming Golden Week holiday during May first week. Normally, the company books 30,000 mt of scrap per week. Hyundai’s bids for H2 scrap stood at 26,500/mt FOB, while those for HS and shredded were at Yen 28,500/mt FOB. The bid for Shindachi scrap were up by Yen 2,500/mt to Yen 29,000/mt FOB.

Taiwanese offers for Japanese H2 scrap material during the week quoted at Yen 23,980-24,535/mt FOB . However, the offers did not go through since it was even lesser than the offers of Yen 24,800/mt FOB by South Korean Dongkuk Steel Mill.

Meantime, Japanese domestic scrap prices continued to increase during the week. Keeping track with the rising prices, Tokyo Steel Manufacturing has decided to raise its scrap purchasing prices at all works by Yen 500-1,500/mt. The price hike will be in effect from Thursday arrivals. Post hike, the company’s H2 scrap buying prices at its Utsunomiya works in northern Tokyo would be Yen 24,000/mt. The steel maker has raised its scrap purchasing prices by Yen 1,500-3,000/mt over the past week.

Other domestic mini mills have also lifted their scrap purchasing prices in line with Tokyo Steel. According to them, mini mills are being forced to pay higher prices in order to secure sufficient scrap supplies.