According to sources, there have been more deals for ex-Japan scrap disclosed to the market, following the price decline last week.
After South Korea’s largest scrap importer Hyundai Steel announced its new bid price for ex-Japan H2 scrap on Thursday last week at JPY 22,000/mt ($208/mt) FOB, suppliers have started negotiations and up to 50,000 mt of scrap have been sold at this level, according to sources.
On Monday, March 16, the Kansai Tetsugen export tender in Japan for the sale of 5,200 mt of Japanese H2 scrap has been closed at JPY 21,825/mt ($206/mt) FAS, which is JPY 925/mt ($9/mt) below last month’s result. Moreover, it is JPY 830/mt ($8/mt) below the average price in the Kanto export tender last week.
The outlook for the scrap market has been bearish recently and prices still have some limited room to go down, taking into account the low domestic demand in Japan, sources said. The ex-Japan H2 scrap price level for South Korea and Southeast Asia is JPY 22,000-22,500/mt ($208-213/mt) FOB on average.
$1 = JPY 105.779
