Following increasing global scrap prices, increased scrap buying price announcements by domestic mills, and a tight domestic supply as scrap sellers are holding on to inventory as they anticipate further price increases, Japanese H2 scrap export offers prices have adjusted upward.
Export offers are presently at JPY 29,000-29,500/mt ($256-261/mt) FOB Tokyo Bay. According to sources close to the market, this increase is up approximately JPY 2,500-3,000 from the week ended February 17. Live bids remain at JPY 28,000-28,500/mt ($247-252/mt) FOB Tokyo Bay, but few traders are expected to make deals at this price level due to tight supply and expectations of a continued upward trend in pricing.
Sources note recently completed deals to South Korea at JPY 28,000-28,500 ($247-252/mt) FOB Tokyo Bay or approximately $269-274/mt CFR South Korea. While South Korean buyers showed reluctance to increase bid prices through the week ended February 17, strong global market prices helped move bids upward by JPY 2,000-3,000 early this week to meet sellers’ required ranges.
Other Japanese H2 deals were also heard at $272-273/mt CFR Vietnam in the past week. These transaction prices reflect an increase of $10-11/mt from an H2 deal the week ended February 10 that sold for $262-263/mt CFR Vietnam.
Ex-Japan H2 export offer prices are presently at $290-292/mt CFR Vietnam, $280-282/mt CFR Taiwan, and $280-282/mt CFR South Korea. These prices translate to approximately JPY 29,000/mt ($256/mt) FOB Tokyo Bay. Sources note that volumes are limited as sellers expect further price increases and are temporarily withholding offers.
$1=JPY 113.15