Following a long-standing uptrend, Japanese scrap exporters have been forced to cut prices, seeing lower demand. As a result, there have been some deals signed in Vietnam and Taiwan at reduced prices.
Japanese exporters have lowered prices for H2 scrap to JPY 25,500-26,000/mt ($238-243/mt) FOB, down by JPY 1,000/mt ($9.4/mt) late this week compared to last week’s level.
Demand from South Korea for ex-Japan scrap has been at a low level this week. Moreover, Hyundai Steel has signed a long-term contract for supply of Japanese scrap in the third quarter, according to market sources, “but now they were reducing the tonnage [compared to those in the long-term contract for the second quarter] as the steel production itself is lower,” an Asian trader told SteelOrbis. There have been reports in the market that the new bids for H2 scrap from major South Korean buyers will not be higher than JPY 25,500/mt FOB, while the previous workable level was JPY 26,500/mt FOB.
A deal for Japanese H2 was heard at $270/mt CFR south Vietnam before Thursday, while later this week a sale has been negotiated at about $265/mt CFR. Prices have fallen by $10/mt compared to last week.
A deal for ex-Japan H1/H2 to Taiwan has been rumoured at $267/mt CFR this week.
