ASIA FERROUS SCRAP: Outlook mixed amid competitive Japanese scrap

摘要

The Asian ferrous scrap spot market has softened amid an ample supply of Japanese cargoes in the region, which allowed buyers to purchase both these and United States-origin shipments at lower prices. Numerous buyers are expecting Japanese scrap to remain the most competitive in Asia in the near term, especially with Shindachi scrap - a Japanese grade of busheling - being offered at levels similar to shredded scrap. This encourages buyers to opt for cargoes of Shindachi, a type of prime scrap, instead of the obsolete grade. But market participants do not have a clear outlook. Many of them feel the spot market is being pulled in opposite directions as a result of steady demand in South Asia and a subdued appetite in Southeast Asia.