By the end of this week, South Korean scrap importers have voiced higher bids for Japanese scrap, which has been expected by sellers.
One of the major buyers has announced its bid for Japanese H2 scrap and has bought some tonnage at JPY 27,000/mt CFR, which translates to around JPY 25,000/mt ($239/mt) FOB, according to market sources.
Moreover, another steelmaker from S. Korea has bidded at JPY 29,000/mt CFR for shredded scrap from Japan and at JPY 29,500/mt CFR for Shindachi. These prices also correspond to close to JPY 25,000/mt ($239/mt) FOB for H2. The previous deals for H2 in S. Korea were at JPY 24,000/mt FOB, indicating price increase by JPY 1,000/mt or $9.5/mt this week.
New deals from Japan to S. Korea are in line with the tradable value for Japanese H2 scrap, which has increased by JPY 500-1,000/mt since last week to JPY JPY 25,000-25,500/mt ($239-244/mt) FOB.