Bids for Japanese scrap lower, but suppliers resist

Tuesday, 29 September 2020 16:59:48 (GMT+3)   |   Istanbul

Prices for Japanese scrap have remained at the same level as last week, following a previous significant decline, but customers have been looking for additional discounts. Only limited volumes have been booked so far as suppliers have been resisting a further drop in price.

The tradable value for Japanese H2 scrap has remaıned at JPY 27,000-28,000/mt ($256-265/mt) FOB thıs week. Most offers have been at JPY 28,000/mt FOB and above with suppliers closely watching the Turkish market and resisting a further decline.

In South Korea, a bid for shredded scrap from Japan from POSCO has been heard at JPY 32,000/mt CFR this week, which translates to JPY 30,000-30,500/mt FOB, almost in line with the previous bid from Hyundai Steel last week. “But not many suppliers accept it,” a source said. Also SeAH Steel has been bidding at JPY 32,800/mt CFR for shindachi. In total, around 20,000 mt of higher quality Japanese scrap has been sold to South Korea.

In Vietnam, bids for H2 scrap have declined to $290/mt CFR and below. Late last week, this grade was traded at $292/mt CFR after earlier booking at $295/mt CFR. “The tug of war continues,” a trader said.

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