Weak Asian demand has put further pressure on ex-Japan scrap prices with H2 prices falling visibly, while shindachi scrap has also posted some decreases, though smaller than last week.
The SteelOrbis reference price for export H2 scrap from Japan has gone down to JPY 47,500-49,500/mt ($420-438/mt) FOB, losing JPY 1,500-2,000/mt ($13-18/mt) over the past week, following the stable trend a week ago. The lower end of the range corresponds to a bid from Hyundai Steel and, though the total purchase volume should be limited, the sale has been confirmed. The higher end of the price range corresponds to the level that Japanese sellers could provide to Vietnam.
The price level for ex-Japan H2 scrap to Vietnam has been at $490-500/mt CFR, but no new deals have been reported. “No one can bid and buyers are in a wait-and-see attitude,” a supplier said, adding that the further trend will highly depend on the Kanto tender, which will be held on December 9.
Offers for H1/2 to Taiwan have remained at $490/mt CFR.
For the higher grade scrap, the declining trend has slowed down. In particular, shindachi scrap has been purchased by two South Korean mills at JPY 60,000/mt ($531/mt) FOB, down by JPY 1,000/mt ($9/mt) over the past week.
The local market has remained relatively stable this week.