April 05, Chinese scrap import situation

April 05, Chinese scrap import situation

Based on latest statistics data, China totally imported 2.56 million tons of scrap for the 1st Q 2005, down 21% year on year, while up 10.9% over that of the 4th Q 2004. For detail, scrap import for March 2005 totaled 965'200 tons. China scrap import from the US and Japan totaled 264'700 tons and 210'500 tons respectively in March 2005, holding 27.42% and 21.80% among its total scrap import; and that from CIS has totaled 284'100 tons, holding 29.4% among the total. At the moment, Japan's HMS II scrap export price to China has been around $250/ton, down about $30/ton over that in early Apr, 05. Japan Tetsugen Group bid 5000 tons of HMS II on Apr 21 with an average price of 225'000 Yen/ton for May 20-June 30 delivery, down 2'827 Yen/ton against the price of previous time. Meanwhile, due to weak procurement from East Asian steelmakers, Japan steelmakers have gradually reduced their scrap procurement price also. For example, Tokyo Steel has adjusted its scrap procurement for three times with 2'500-3'000 Yen/ton extent. In April 2005, the US Ford and Daimler Chrysler has raised auto scrap price by $28/ton, pushing domestic and export price to recover, while along with weakening Asian market, the US scrap export market has suffered heavier pressure. At the end of March 2005, Shagang imported a batch of clippings with that price of $294-296/ton, while the current market quotation has dropped to $290/ton(C&F), down $5-8/ton. Meanwhile, price of shredded scrap and Bonus has been $300/ton and $310/ton, down $10-20/ton.