Prices for ex-Japan scrap have followed the global uptrend with some rare deals already reported at higher levels. Nevertheless, suppliers have been inactive, waiting for the result of the Kanto export tender which will be held on May 11, sources have told SteelOrbis.
The reference price for ex-Japan H2 scrap has been increased to JPY 45,000-46,000/mt ($214-224/mt) FOB, up by JPY 2,000/mt ($18/mt) compared to pre-holiday level in late April. The higher prices have mainly reflected the tradable levels to Vietnam, while customers from S. Korea have been inactive, focusing on local scrap purchases and not giving bids.
Japanese exporters have said that they have not been very interested in sales as the market is very bullish. “The H2 FOB price is at JPY 46,500-47,000/mt [$428-432/mt], if customers ask for current offers,” a major seller said.
A deal for H2 scrap has been done to Vietnam this week at $480/mt CFR, which is $15/mt above a contract price in the past week of April. Rare offers for ex-US bulk offers have been at $490/mt CFR to Vietnam, but no fresh offers have been heard on Friday and sellers will try to ask for $500/mt CFR early next week, most market sources believe.
An offer of ex-Japan H1/2 scrap to Taiwan has been heard at $480/mt CFR recently, up by $20/mt over the past week.
“I will not be surprised if prices in the Kanto tender reach [equivalent to] $500/mt,” a source said.