Offers from major Japanese scrap suppliers for H2 have increased by JPY 500/mt ($4.8/mt) to JPY 25,500-26,000/mt ($243-247/mt) FOB this week. At the same time, deal prices have not increased much and suppliers expect to achieve better realizations in the near future.
The tradable value for Japanese H2 scrap has increased by JPY 500-1,000/mt to JPY JPY 25,000-25,500/mt ($238-243/mt) FOB. “Buyers are cautious, but they are likely to increase bid prices soon,” a seller told SteelOrbis.
The latest deals for ex-Japan H1/2 50:50 by bulk have been heard at up to $258/mt CFR in Taiwan and, though this is in line with the transaction level heard late last week, sources have said that the price on FOB basis in the Japanese currency has increased, taking into account the strengthening of the currency against the US dollar.
Vietnamese customers are still in negotiations. The workable price level for H2 has remained at $260-265/mt CFR for now.
Buyers in South Korea have been silent and there have been no new bids heard, while sources said that customers will have to accept JPY 25,000/mt FOB and above, if they need to buy. The previous deal price was equivalent to JPY 24,000/mt FOB.