On April 28, SteelOrbis reported Japanese H2 grade ferrous scrap export offers at JPY 26,000-26,500/mt ($233-238/mt) FOB Tokyo Bay while South Korean mills were heard bidding for H2 scrap at JPY 24,000-25,500/mt ($215-229/mt) FOB Tokyo Bay for June delivery with some low volume active trading heard at JPY 25,000-25,500/mt ($224-229/mt) FOB Toyko Bay.
Due to a holiday week in Japan, the first week in May was relatively quiet. Limited Japanese H2 grade ferrous scrap export offer prices were heard on May 4 at JPY 25,000-25,500/mt ($222-226/mt) FOB Tokyo Bay with bids at JPY 24,500-25,000/mt ($217-222/m) FOB Tokyo Bay. The offer price declined JPY 1000 or $10-12/mt, but sellers were reluctant to meet the lower bids.
Low-priced Chinese scrap that entered the global market as a result of government closures of induction furnaces have been influencing the delay in scrap purchases in South Korea, Vietnam and Taiwan for the last several weeks. A source noted that a South Korean mill has been heard purchasing low volumes of Chinese shredded scrap at $260/mt CFR. Quality has been expressed as a concern, yet mills in South Korea are reportedly performing quality assessments for possible larger purchases.
Early this week, the news of H2 scrap sold to Taiwan at $250/mt CFR has translated to regained strength in the H2 export market, moving ferrous scrap export offers back up to JPY 26,000-27,000 ($228-236/mt) FOB Tokyo Bay. Although due to exchange fluctuations, the bottom of the offer range has declined $5/mt in dollar terms. The return to late April offer prices is attributed to overall stable prices in the global scrap market as well as hopes for additional purchases since Chinese scrap is no longer expected to stall the export market as initially feared.
$1=JPY 111.44, 4/28/2017
$1=JPY 112.77, 5/04/2017
$1=JPY 114.27, 5/09/2017
$1=JPY 112.77, 5/04/2017
$1=JPY 114.27, 5/09/2017