Global ferrous scrap market roundup from MEPS
Monday, 30 April 2012 | 00:00
In China, average provincial quotations increased marginally, despite fewer deals concluded and deteriorating market fundamentals. Internal steelmakers intend to persevere with cautious procurement strategies in May-July period.
Price growth was witnessed in only two of the four Indian regions researched by MEPS. Local traders remain cautious about the general outlook for the rest of the year. Buying sentiment has been unsettled by reservations about the new excise duty rate of 12 percent.
The outlook for the Japanese market remains uncertain. Transaction values for H2 graded material declined. Tokyo Steel Manufacturing, a bellwether for the domestic steel industry, lowered its HMS2 buying prices at all subsidiaries after fulfilling reserve targets ahead of the “Golden Week” holidays. Other electric furnaces responded with similar reductions.
Russian transaction values for 3A graded material edged higher in the central, southern and Ural federal districts. Domestic dealers expect the business environment to remain challenging in the second quarter. The seasonal pick-up in steel demand from the construction sector has fallen short of industry expectations.
Purchasing prices have softened for the three grades tracked by MEPS in the United States. Quotations declined to figures below December 2011 levels. Shredded and bushellings transaction values are unlikely to rebound due to a steady flow of material into yards.
Turkish steelmakers purchased ferrous scrap sporadically in April, after finding it difficult to fill order books. Importers are expected to resume sourcing scrap material in week 19. European and North American suppliers intend to leave their quotations unchanged due to material shortages.
South Korean steelworks have allowed inventories to run down. The price differential between domestic and imported scrap material remains negligible. Importers are in no immediate hurry to conclude deals as a result.
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