Scrap suppliers from Japan have managed to increase export deal prices further owing to demand from Taiwan and Vietnam, though customers from South Korea have been mostly cautious.
The reference deal price level has increased to JPY 23,500-24,500/mt FOB, with the midpoint at JPY 24,000/mt ($224/mt) FOB, up by JPY 500/mt ($4.7/mt) on average from last week, according to SteelOrbis’ information. Most deals to Taiwan and Vietnam have been done at a level equivalent to slightly above JPY 24,000/mt FOB.
Taiwanese customers have purchased Japanese H1/2 50:50 scrap at $256-258/mt CFR this week, while last week a deal was signed at $254/mt CFR. “Taiwan is active and can accept a price increase,” a Japanese source said, adding that the new deals translate to JPY 24,200-24,300/mt FOB.
Also, there has been information in the market that a booking of Japanese H2 to the south of Vietnam has been in the range of $260-265/mt CFR, while most deals were at $255-260/mt CFR last week.
There have been no reports about new deals to South Korea so far after last week's transactions at JPY 23,000/mt FOB, as SteelOrbis reported earlier. But for the next contracts the market price level should be at around JPY 23,500-24,000/mt FOB, sources from the seller’s side have said.
