Though bearish sentiment has persisted in the Japanese scrap export market over the past week, suppliers have held their prices for H2 and have managed to increase prices for higher grade scrap amid stronger demand in the local market ahead of the Golden Week holiday (starts on April 29).
The SteelOrbis reference price has remained at JPY 43,000/mt ($398/mt) FOB late this week, stable compared to the latest sales reported late last week. Not much export activity has been reported this week as most sellers have still been asking for JPY 44,000/mt ($407/mt) FOB, while buyers from South Korea have been focusing on domestic purchases with prices moving down gradually. At the same time, Japanese exporters have preferred to sell in the local market, where demand has increased ahead of the week-long holiday, rather than provide discounts to foreign customers, sources have said. “We see limited offers in the export market now,” a market source said.
Also, some improvement in sentiment has been seen in Vietnam’s import scrap market. Offers for H2 from Japan have been at $460/mt CFR minimum. Though no deals have been reported at higher levels so far, they are expected soon, taking into account the resumption of billet imports at higher prices in China. Last week, the deal price level was at $450-455/mt CFR.
In the HS scrap segment, prices have shown an increase this week. The latest offers from Japan have been ranging at $510-520/mt CFR, versus $505-510/mt last week. One importer has purchased ex-South Korea HS scrap at $505/mt CFR and $500/mt CFR has been assessed as the workable level for ex-Japan HS. Earlier this week, the tradable value for imported HS scrap in China was reported by SteelOrbis at $490-500/mt CFR.