On May 17, SteelOrbis reported containerized Japanese H2 scrap offers at $240-245/mt CFR Taiwan and $250-255/mt CFR Vietnam which translated to approximately JPY 24,000-24,700/mt ($216-223/mt) FOB Tokyo Bay. Soft bids from buyers at the time were reportedly targeting $230-235/mt CFR Taiwan and South Korea and $240-242/mt CFR Vietnam levels, which translated to approximately JPY 23,000-23,400/mt ($207-211/mt) FOB Tokyo Bay. At the time, low volume deals of HMS I/II 80:20 were at $235-240/mt CFR Taiwan from the US West coast.
According to sources, a South Korean mill has been heard bidding and booking Japanese H2 scrap at JPY 24,000-24,500/mt FOB Tokyo Bay in late May and early June. This translates to $218-222/mt FOB Tokyo Bay at the present exchange rate. Japanese H2 export deal prices have increased and are reportedly at $245/mt CFR to Taiwan and South Korea while H1/H2 (50:50) scrap has sold at $247-249/mt CFR to the same destinations. South Korean mills have also been heard purchasing Russian origin A3 scrap at $261-264/mt CFR South Korea.
Offers for Japanese H2 scrap have increased by $8-10/mt since mid-May and are now at $248-255/mt CFR Taiwan and South Korea. As a result of the increases in the Japanese market, US West coast offer prices on containerized HMS I/II 80:20 increased to $245-250/mt Taiwan with trades crossing the $240/mt CFR Taiwan threshold since this past week. According to sources, this trend has continued to support pricing on the US West coast this week along with the limited downward movements in the US domestic market in the June buy-cycle and relatively stable pricing on ex-US East coast scrap transactions to Turkey. Ex-US scrap prices to Taiwan and South Korea are expected to remain in the same range through June.
$1=JPY 110.95, 5/17/2017
$1=JPY 110.17, 6/08/2017