Bid prices for Japanese H2 scrap in South Korea have fallen further this week. Dongkuk Steel has announced its bid at JPY 26,500/mt ($251/mt) FOB, JPY 500/mt ($4.7/mt) below the previous trading level heard last week. According to traders, only two small parcels have been booked at this price level, with the total tonnage less than 10,000 mt, SteelOrbis has learned. The majority of exporters from Japan have been resisting a further price decrease. “Though the price rise has not started here yet, it is awaited,” a Japanese source said.
At the moment, most offers of Japanese H2 scrap are still at JPY 27,500-28,000/mt ($261-265/mt) FOB, while bids have remained below the lower end of this range and overall demand not only from S. Korea but also from Southeast Asian countries has been reduced.
Nevertheless, signs of a change in the price trend in the near future have already emerged in Asia after some gradual increase seen in Turkey. For instance, suppliers from the US have increased offers for HMS I/II 80:20 in containers to Taiwan to a minimum of $270/mt CFR, up by $5/mt from the previous deals.
The reference price level for ex-Japan H2 scrap has widened to JPY 26,500-28,500/mt FOB, but has remained stable on average, at JPY 27,500/mt FOB.