Prices for Japanese scrap in the export market have remained under pressure this week as suppliers have faced lower bids from the major sales destinations. Most exporters have been offering only limited quantities and are hoping for a price increase, which, however, appears hard to achieve immediately, sources have said.
The SteelOrbis reference price for ex-Japan H2 scrap is at JPY 40,000-41,000/mt ($367-376/mt) FOB, down by JPY 500/mt ($4.6/mt) on average from last week.
The lower end of the range corresponds to the latest bid price from South Korea. One of the major South Korean importers, Hyundai Steel, has announced today, March 25, its new bid prices for Japanese scrap, cutting them by JPY 1,000/mt ($9/mt) compared to the previous sales to S. Korea. The new bid of Hyundai Steel for H2 scrap is JPY 40,000/mt ($367/mt) FOB, SteelOrbis has learned from market sources.
A deal for ex-Japan shredded scrap was heard at JPY 46,000/mt ($422/mt) FOB to S. Korea early this week, but the latest bids have been reported at JPY 45,000/mt ($412/mt) FOB.
“Offers are very limited. We are still working on shipping [scrap under the already signed contracts] now. Prices should be close to the bottom,” a trader said. As SteelOrbis reported last week, Japanese suppliers have faced difficulties in finding vessels for current shipments and other transportation issues.
Offers from Japan to Vietnam for H2 scrap have been heard at $435-440/mt CFR this week, while bids have remained not above $430/mt CFR, in line with last week. No new bookings have been confirmed so far.
Trading in the higher scrap grades segment has been falling over the past week to ten days, according to sources, amid weaker sales to China. In addition to lower bids for HS scrap, which are $465-470/mt CFR China maximum versus $470-475/mt CFR late last week, there have been continuing issues, including higher freight rates and strict checks of scrap at ports for correspondence with standards.