In the second quarter of 2024, Asian scrap prices continued their downward trend, continuing the decline seen in the previous quarter. The decline is attributed to several factors, including an increase in scrap sellers looking to reduce their inventories, higher energy costs, sluggish demand from downstream sectors, and an oversupply of cheap billets.
As of July 17, prices for US-origin containerized HMS 1/2 80:20 scrap shipped to Taiwan had fallen to USD 345 per ton CFR, down from USD 353 per ton CFR on March 11. The rise in power prices, which led to a reduction in mill production by approximately one-third, contributed to this decline. Similarly, although Japanese scrap prices saw a slight increase to Yen 50,400 (USD 343) per ton on July 17, up from Yen 50,200 (USD 341) per ton on March 27, the value in USD dropped by USD 10 per ton due to the weakening yen, reflecting the broader regional downtrend.
The influx of competitively priced billets from Russia, China, Indonesia, and even South Korea has further pressured scrap prices in the region.
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