Japanese scrap exporters have faced a slowdown of demand in key markets over the past week and have been forced to lower prices to conclude deals. Most importers have been waiting for a bigger price drop in the near future and, due to overall lower consumption of scrap at mills, they have decided to postpone purchases.
The tradable value for Japanese H2 scrap has slipped by JPY 1,000-1,400/mt ($9.6-13.4/mt) since last week to JPY 28,500-29,000/mt ($272-277/mt) FOB, according to SteelOrbis. “Asian buyers started stepping back. Moods in Turkey are also bearish,” a Japanese trader stated, commenting on the lower prices.
A contract for H2 scrap has been signed at $305/mt CFR to Vietnam during the week, which is slightly more than $5/mt below the previous transaction level. Offers have been heard at $310/mt CFR Vietnam, but customers have all rejected this price level.
South Korean mills have stopped purchases this week due to production cuts and the downtrend in the local scrap market. Last week, Hyundai Steel was bidding for Japanese H2 at JPY 28,000/mt FOB, but no new bids have been heard for now.