On November 24, the scrap export price in Japan reached JPY 50,000/t FOB Tokyo Bay, up JPY 1,000/t from the previous week. This increase is expected to be associated with the demand to build up inventories at the end of the year, which is expected to lead to an upward trend in prices. A major Japanese steel company raised its HRC (high strength coil) price for January delivery by $50/t to $700/t CFR at major ports in the EU and $600-630/t CFR in Asia.
The higher export price of scrap in Japan raises expectations of activity and growth in the steel industry. The rise in raw material prices has triggered a desire to replenish inventories. This is leading to a rise in steel prices.
In addition, a leading Japanese steel company increased its HRC prices, which is an important step showing the momentum in the sector. Prices of $700/t CFR, especially at major ports in the EU and $600-630/t CFR in Asia are positive news for steel producers. These price increases are part of the company's goal to increase its profitability and size.
The increase in the export price of scrap in Japan and the price increases by the Japanese steel company paint a promising picture for the future of the industry. This could be a positive turning point for Japan's steel industry.
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