The situation in the Asian scrap market has been quiet this week as Japanese exporters were on holidays in the first half of the week and have only come back to the market on Thursday. Demand has been weak in major markets like South Korea and Vietnam. Taiwanese customers have been making purchases at a level similar to last week. However, late this week signs of rebound have emerged after scrap prices increased in Turkey.
Japanese exports
Japanese exporters have not changed prices much compared to last week and H2 scrap offers are still mostly at JPY 21,000-21,500/mt ($197-202/mt) FOB. “Japanese exporters are quiet this week as they have had only two working days,” a trader said. Most South Korean importers have stayed away from import bookings, preferring local scrap. Taiwanese customers have been buying selectively at price levels equivalent to JPY 21,000-21,500/mt FOB for H2 scrap. Next week, there will be the monthly Kanto Tetsugen tender with most market participants expecting it will bring more clarity to the market. Market participants expect some price increase as US-based exporters have already started to reject lower bids and overall suppliers’ positions have become stronger.
Taiwan
Deal prices for ex-US HMS I/II 80:20 in containers in Taiwan have been heard at $220-225/mt CFR compared to $220-223/mt CFR last week. Contracts at the lower end of the range were mostly signed early this week, SteelOrbis has learned, and they reflect most bids in the market at the moment. At the same time, some tonnages have been also traded at $225/mt CFR Taiwan later this week “from bid US scrap yards,” an importer said. As a result, late this week major US exporters have raised offers to $230/mt CFR Taiwan.
Offers for Japanese H1/2 50:50 scrap in bulk have increased by $2-3/mt to $232-235/mt CFR Taiwan this week. There have been no reports of new deals, but customers have said that contracts may be signed at $235/mt CFR Taiwan in the near future. “Japanese scrap was too cheap earlier. Now the gap between US and Japanese scrap is coming back to the standard $15/mt,” one of the major buyers said.
Vietnam
Vietnamese customers have mainly taken a wait-and-see position this week. Offers for Japanese H2 have increased to $240/mt CFR and above, but bids have not improved much. Customers have been looking for $232/mt CFR. “This is slightly below than deals to Taiwan,” a trader said.
