Japanese scrap prices have increased visibly in the export market over the past week, supported by the uptrend in the local market and improved bids from Southeast Asia, Vietnam in particular, and some sales to East Asia.
The SteelOrbis reference price for Japanese H2 scrap has moved up by JPY 2,000-2,500/mt ($18-23/mt) since last week to JPY 42,500-44,000/mt ($387-401/mt) FOB.
The lower end of the range corresponds to the latest deal to one of the South Korean buyers. This is JPY 1,500/mt ($14/mt) higher in comparison with the contract to S. Korea from Japan last week and JPY 2,500/mt ($23/mt) above the previous bids of Hyundai Steel. Nevertheless, most Japanese exporters are now offering not below JPY 44,000/mt ($401/mt) FOB and it is hard to “find volumes at any lower price,” a source said.
Offers for H1/2 50:50 by bulk from Japan to Taiwan have increased by at least $10/mt compared to Friday, April 2, to $450/mt CFR and above.
Japanese suppliers have been supported also by higher bid prices from Vietnam. Customers in this country have been ready to accept $450-455/mt CFR for H2 scrap, up by $10/mt week on week, sources have said. And though transportation issues have remained, sentiment has improved in the market. “We see demand and expect a further [price] increase in April,” a trader from Japan said.
In the higher grade scrap segment, trading activity has still been low as Chinese customers have been focusing on local purchases. Offers of ex-Japan HS scrap to China have been at $500-505/mt CFR China. The tradable level has increased by $15-20/mt from last week to $470-480/mt CFR and sources believe that demand will improve in the near future.