Japanese scrap exporters have continued to increase their prices further. The main support has come from strong demand for prime grade scrap in export destinations, while buying activity in the lower grade segment has remained quite moderate.
Most Japanese suppliers have been aiming to sell H2 scrap abroad at JPY 52,000/mt ($471/mt) FOB. Firm demand in the local market in Japan is supporting exporters as they may sell to domestic mills at prices equivalent up to JPY 51,000/mt ($462/mt) FOB.
But foreign customers have not been ready to accept such higher levels with most bids staying at not above JPY 50,000/mt FOB. The tradable price level for ex-Japan H2 scrap in Vietnam has increased over the past week to at least $500/mt CFR Vietnam, versus $480-500/mt CFR last week, but demand has been very limited, according to market sources.
On balance, taking into account the most recent developments, the SteelOrbis reference price for ex-Japan H2 scrap has increased by JPY 1,000-2,000/mt ($5-13/mt) over the past week, to JPY 49,000-51,000/mt ($443-462/mt) FOB.
Meanwhile, in the higher grade scrap segment, the market has been quite active this week, with a number of bookings done to South Korea and China. In particular, late this week the major importers from S. Korea booked ex-Japan HS scrap at JPY 56,000-57,500/mt ($507-520/mt) FOB, while deals for shindachi grade scrap to the same destination were fixed at JPY 57,000/mt ($516/mt) FOB. Meanwhile, shredded scrap has recently been traded to South Korea at JPY 55,000/mt ($498/mt) FOB.
In addition, a contract for 3,000 mt of ex-Japan shindachi grade scrap to China has been signed at $550/mt CFR.