Downtrend persists in import scrap markets in all major Far Eastern countries

Friday, 23 August 2019 16:33:07 (GMT+3)   |   Istanbul

Import scrap prices have posted a decline in the Far East, which has been fixed in deals in Taiwan, South Korea and partly in Vietnam this week.

Contracts for ex-US HMS I/II80:20 in containers were done at $275/mt CFR on average early this week, $10/mt below the offer prices announced in the middle of the month. But late this week, offers have already touched $270/mt CFR, SteelOrbis is informed, indicating suppliers’ desire to sell.

The latest deal in South Korea for Russian A3 scrap has been concluded at $278/mt CFR, $5/mt down from the previous transaction in early August. South Korean customers have been reluctant to buy ex-US scrap, bidding below $300/mt CFR, while offers were still $5-10/mt higher.

Active negotiations for Japanese scrap purchases have been held in South Korea this week with the rumor spread that one transaction for H2 scrap has happened at JPY 27,000/mt ($253/mt) FOB, but most market sources have denied that exporters have already been ready to sell big volumes at such a level. However, taking into account the further weakening of domestic scrap market in Japan, Korean customers will be able to get discounts from Japan. Tokyo Steel has cut local scrap purchase prices at four out of five of its plants by JPY 500-1,000/mt ($5-9/mt), effective from August 22.

Trading activity has been extremely low in Vietnam with offers for ex-US HMS I/II 80:20 by bulk remaining at $310-315/mt, while bids have fallen to $305-310/mt CFR. “Buyers are sure that prices will keep going down, while the Turkish market is on a downtrend, so they [customers from Vietnam] prefer to book only small lots from Japan [of H2 scrap] at below $300/mt CFR,” an Asian trader told SteelOrbis.

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