Japanese suppliers have decided not to increase prices further for now after the latest hikes last week and early this week.
The SteelOrbis reference price for ex-Japan H2 scrap has been at JPY 42,500-44,000/mt ($397-411/mt) FOB, with only the higher end of the range increasing by JPY 500/mt ($5/mt) since late last week.
The higher end of the range corresponds to the price level in sales from Japan to Vietnam. Late last week, Vietnamese customers accepted higher prices for ex-Japan H2 scrap and bought a few cargoes at $450-452/mt CFR. For now, offers to Vietnam are coming at $460/mt CFR, changed just slightly from $450-460/mt CFR last Friday. “It seems prices are reaching some plateau,” a Japanese trader said.
The lower end of the general range of scrap prices from Japan (JPY 42,500/mt FOB) is showing the latest deal price level in S. Korea. Though local prices in S. Korea have been on the rise since Monday this week, there have been no new deals for import scrap reported so far. Hyundai Steel will realize its new bids for Japanese scrap on Thursday, March 4.