Prices for Japanese bulk shredded scrap have tumbled over the last week amid a drop in intake from a major Japanese blast furnace (BF)-based mill and discounted sales to South Korea.
In late September, sources told Fastmarkets that
shredded demand at BF-based mills had benefitted greatly from the tight supply of Shindachi prime scrap, but a reduction in shredded purchase volumes in recent weeks has put pressure on prices for the grade.
The BF-based mill, located on the island of Kyushu, was heard to have skipped purchasing the grade by vessel last week, a leading Japanese scrap trader said.
The mill is one of the largest single consumers of shredded scrap in Japan and its exodus from that market has therefore affected supply volumes elsewhere in the country.
"I think many dealers are willing to sell shredded. It is available now because the major Japanese BF mill decreased their purchase volumes last month," a second Japanese scrap trader said.
"Once South Korea stays quiet, higher grades could decrease...