With most South Korean steelmakers being barely ready to accept price increases for ex-Japan scrap as yet, Japanese scrap suppliers have continued to enjoy significant gains in their domestic market. Moreover, Japan-based scrap suppliers are benefiting from higher demand in Vietnam.
Accordingly, following the recent amendments declared this week, on September 17 the main EAF-based steel producer in Japan, Tokyo Steel, has decided to revise its purchase scrap prices upwards again. This time, the company raised its purchase prices for H2 and shindachi scrap by JPY 1,000/mt ($9/mt) at the Tahara, Okayama, Kuyshu and Takamatsu plants. The H2 scrap price for the Utsunomiya plant has remained unchanged at JPY 47,000/mt ($427/mt). Consequently, H2 scrap prices have been settled at the range JPY 47,000-51,500/mt ($427-468/mt), with the average price having risen by JPY 800/mt ($7.3/mt) compared to the previous levels. Meanwhile, the prices for shindachi scrap have been fixed at JPY 49,000-55,000/mt ($445.5-500/mt) FOB, with the lowest end of the range valid for the Utsunomiya plant.
Plant |
H2 |
Shindachi |
||
Price (JPY/mt) |
Price change (JPY /mt) |
Price (JPY/mt) |
Price change (JPY/mt) |
|
Tahara |
49,000 |
1,000 |
55,000 |
1,000 |
Okayama |
51,500 |
1,000 |
55,000 |
1,000 |
Kuyshu |
50,000 |
1,000 |
52,000 |
1,000 |
Utsunomiya |
47,000 |
0 |
49,000 |
0 |
Takamatsu |
48,500 |
1,000 |
51,000 |
1,000 |
Meanwhile, the most recent deals for ex-Japan H2 scrap in Vietnam have been heard at $485-487/mt CFR, rising by $7-15/mt over the past week. Overall activity from Vietnam has been higher this week and suppliers may start to offer at near $500/mt CFR soon.
In the meantime, South Korean steelmakers, not being in a hurry to book, have mostly adopted a wait-and-see stance, closely watching the current developments in the market. Though SteelOrbis has heard of a booking for shindachi scrap at JPY 60,500/mt ($552/mt) CFR this week, up JPY 500/mt ($4.5/mt) compared to the previous levels. There have been no fresh bids for H2 scrap from South Korea recently as customers understand that they will have to increase them significantly to find any volumes. Last week, bids were at JPY 43,500-45,500/mt FOB, while for now most Japanese sellers will not provide prices below JPY 46,000/mt FOB, according to sources.
On balance, the range of ex-Japan H2 scrap prices has narrowed this week to JPY 46,000-47,000/mt ($420-429/mt) FOB from JPY 45,000-47,000/mt ($409-427/mt) FOB a week ago, mostly due to higher deal prices in the Vietnamese market.