TEX reported that Japan's domestic market prices of locally available ferrous scrap continued downward in early June 2012 when they even slid to below a low of them in October 2011. At the time, there were repercussions of uncertainty over economic conditions in Europe. Meanwhile, negotiated prices of No1 HMS import into South Korea from the USA sank to a low level for the first time in 20 months.

In early June 2012, Japan's ferrous scrap prices trended downward as if to precede overseas ferrous scrap prices, leading to an accelerated decline in US export prices of ferrous scrap for Asia. Then, signs enhanced of Japan's domestic ferrous scrap market at a low level and a global downswing in ferrous scrap prices headed for a letup. As a result, the world's ferrous scrap market conditions settled down from the middle of June 2012. Besides, negotiated prices of US ferrous scrap exports to Turkey bottomed out in late June 2012 after they had borne strong signs of a weakening.

Negotiated prices of ferrous scrap exports from Japan to South Korea slightly advanced in late June 2012. But uncertain market prospects remained for ferrous scrap transactions in Japan and elsewhere amid a deterioration of factors in the external environment such as slack steel market conditions.

Source - TEX Report Limited

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