Export prices for steel scrap in Japan have remained firm after an increase seen last week and the outlook is positive as the local market has continued to go up and overseas buyers are expected to resume purchases soon and are going to accept higher prices.
According to sources, the Kansai export tender for 5,000 mt of H2 scrap has been closed at JPY 39,005/mt ($370/mt) FAS, which is not far from the Kanto auction sale at JPY 39,271/mt ($373/mt) FAS held last week.
The Kansai export price on FAS basis corresponds to JPY 40,005/mt ($380/mt) FOB. Most sources said that this is the tradable value for now, though most offers are up to JPY 41,000/mt ($389/mt) FOB.
For instance, offers for H2 have been coming at $420/mt CFR Vietnam, while the previous tradable level was $405-410/mt CFR. The minimum tradable level for ex-US HMS I/II 80:20 is $430/mt CFR Vietnam. Buyers are on holidays since last week, but they will have to accept higher price levels, when they will return, sources have said.
The latest offers for ex-Japan H1/2 by bulk to Taiwan have been reported at $405/mt CFR, up by $25/mt compared to the first week of February.
The SteelOrbis reference price for ex-Japan H2 scrap has remained at the last week’s level of JPY 39,500-40,500/mt ($375-385/mt) FOB.