Prices for ex-Japan scrap have moved down week on week, though more slowly than in the previous week. Even though the Japanese yen has been showing weakness, which resulted in benefits for exporters and there are still inquiries from South Korea, the price trend has failed to reverse as it is still a buyer’s market.
Hyundai Steel has announced its new bid for Japanese H2 grade scrap at JPY 45,800/mt ($334/mt) FOB, down by JPY 500/mt from last week, while the dollar-equivalent price has gone down by $8/mt. The buyer’s bid for H1/2 (50:50) has been at JPY 46,300/mt ($338/mt) FOB, declining by JPY 500/mt or $8/mt since May 11.
The new HS price issued by Hyundai Steel has been at JPY 49,800/mt ($363/mt) FOB, down by JPY 500/mt or $9/mt. The highest decrease has been for shredded scrap, with bids down by JPY 1,000/mt or $12/mt to JPY 48,300/mt ($352/mt) FOB.
Last week, Hyundai Steel purchased 50,000 mt of Japanese scrap in total and this week the producer has decided to continue purchases, as other scrap suppliers have been less flexible. Offers for ex-US HMS I scrap have been heard at $400-405/mt CFR, while “mills are willing to pay around $380390/mt CFR,” a source said.
The tradable level for ex-Japan H2 scrap has remained in Vietnam at $360/mt CFR or so, but the market remained very slow.
The SteelOrbis reference price for ex-Japan H2 scrap has slipped to JPY 45,800-46,500/mt ($334-339) FOB, with the lower end of the range down JPY 500/mt over the past week, while the higher end has decreased by JPY 673/mt.