Japanese ferrous scrap suppliers have continued to increase prices in the export market. While the response has been strong from customers in Taiwan and some deals have also been heard to Vietnam, demand from South Korean importers has remained very limited, SteelOrbis has been informed.
Export prices for Japanese H2 scrap to different destinations have increased to JPY 19,500-22,000/mt ($181-204/mt) FOB or to JPY 20,750/mt ($192.5/mt) FOB on average. The lower end of the range JPY 19,500/mt FOB corresponds to the price level for South Korea, which has risen by JPY 1,000/mt ($9.3/mt) from last week. Large importers from South Korea have mostly not been interested in purchases. “Some steel mills are still buying, but prices are much lower than in other markets,” a Japanese trader said.
The higher end of the range (JPY 21,500-22,000/mt FOB or $199.5-204/mt FOB) reflects the tradable value for Vietnam and Taiwan.
In Vietnam, deals for H2 scrap have been heard at $235/mt CFR this week, $5/mt above the previous contracts last week. Offers have increased to $235-240/mt CFR. Sources have said that there is some demand from Vietnam, but it is not high. Prices for HMS I/II 80:20 have been going up more rapidly in Vietnam. Offers from Australia have been at $250/mt CFR, while some other suppliers have been asking $260/mt CFR.
Deal prices for Japanese H1/2 50:50 in Taiwan have increased by $15-20/mt compared to last week to $225-230/mt CFR.
It is expected that Japanese suppliers will keep increasing scrap prices in the near future despite low domestic demand as the supply volume will remain reduced or even decline further due to a possible slowdown in collection.
$1 = JPY 107.701
