Although the Asian scrap market was on holiday during most of the current week, import scrap prices have continued to increase. Market players believe the increasing trend will continue in the coming week. Japanese scrap quotations are also supported by the stronger yen, while the positive expectations regarding China’s return from its holiday also provide support. Several market players stated that the situation in the market will be clearer in the coming week when all players in Asia return from the holiday.
Some Taiwanese buyers have concluded deals for ex-US HMS I/II 80:20 scrap in containers at $408-410/mt CFR. Last week, deals for this grade were at $405/mt CFR.
Deals for Japanese H1/2 50:50 scrap by bulk to Taiwan were at $430-435/mt CFR, despite the Lunar New Year Holiday. Last week, deal prices for this grade were in the range of $425-430/mt CFR.
Also, trading in Vietnam is slow due to the holiday. A Vietnamese mill closed an ex-US West Coast bulk cargo deal at $443/mt CFR, similar to suppliers’ target above $440/mt CFR last week.
The latest deal price for ex-Japan H2 scrap to Vietnam was at $445-450/mt CFR, increasing by $25-30/mt over the past two weeks.
Japanese Tokyo Bay FAS prices have remained stable week on week, as sellers are also waiting to see the volume of demand after the holiday.
Meanwhile, SteelOrbis has learned that South Korean mill POSCO has shared a bid for Japanese HS scrap at JPY 56,000/mt ($432-436/mt) CFR, up from the JPY 55,500-56,000/mt ($432-436/mt) recorded last week. The number of import scrap deals concluded by Hyundai Steel for March deliveries is on the sufficient side and so they have some room to wait. SteelOrbis also hears that domestic flow in the local South Korean scrap market is good after the holiday.
The SteelOrbis reference prices for ex-Japan H2 scrap have settled at JPY 52,000-54,000/mt ($400-416/mt) FOB, up by JPY 1,500-2,000/mt over the week. The lower end represents the unchanged FAS prices, while the upper end is now represented by Vietnam’s procurement prices, with the freight being around $30/mt. The changes in prices have resulted in a $7-11/mt increase in dollar-based quotations.
$1 = JPY 129.77