Prices for Japanese scrap prices have continued to go up this week as buyers from South Korea have announced higher bids and China’s importers have come back to the market, viewing the market as positive.
The SteelOrbis reference price for ex-Japan H2 scrap has added JPY 500-1,000/mt ($5-9/mt) over the past week to JPY 40,500-41,000/mt ($383-388/mt) FOB.
Early this week, one steel mill from S. Korea purchased a H2 scrap cargo at about JPY 40,000/mt ($378/mt) FOB, but on Thursday bids have increased further. Hyundai Steel has issued its new bid prices for Japanese scrap, after a sharp drop on January 28.
Hyundai Steel has issued a bid for H2 scrap at JPY 40,500/mt ($383/mt) FOB, up by JPY 5,500/mt ($52/mt) compared to the company’s bid in late January. The price for H1/2 50:50 has been settled at JPY 41,000/mt ($388/mt) FOB.
New bids of Hyundai Steel for higher grade scrap have increased by JPY 5,500/mt ($52/mt) for HS and shredded scrap to JPY 44,500/mt ($421/mt) FOB, while its bids for shindachi have been risen by JPY 6,500/mt ($61/mt) to JPY 45,500/mt ($430/mt) FOB. Producers from S. Korea expect further price increases in the region, so they had to hike bid prices to more reasonable levels, according to sources.
Prices of Japanese H2 for other Asian buyers are at an even higher level. Offers to Vietnam have started to come at $430/mt CFR, which corresponds to JPY 42,000-42,500/mt ($397-402/mt) FOB. This is up by $10/mt compared just early this week.
For higher grade scrap, Japanese suppliers have been even more bullish. Though the latest bid for HS scrap from Hyundai Steel translates to just $440/mt CFR China, official offers have been much higher as Japanese suppliers believe that the appetite from China will grow, seeing higher iron ore prices. The workable level for HS from Japan is not below $465/mt CFR, according to sources, up from $450/mt CFR China before the holiday.