Japanese scrap exporters have left the market by the end of this week due to the Golden Week holiday in Japan. Most of them have been insisting on higher prices and believe that importers will have to accept an increase in the near future.
The SteelOrbis reference price for ex-Japan H2 scrap has inched up by JPY 500/mt ($5/mt) this week to JPY 43,000-44,000/mt ($395-404/mt) FOB. Overall demand in the export market has been limited this week and most sellers have still been focusing on local sales ahead of the holiday. But even despite this, the optimism in the market has not faded with most exporters expecting trading will be more active from late next week and higher prices will be accepted.
No new deals for ex-Japan scrap have been reported to S. Korea, while rare offers have remained at JPY 44,000/mt FOB, but the number of bids has been low and not above JPY 43,000/mt FOB. “They [steel mills from S. Korea] are buying in the local market now,” a trader said.
The price for ex-Japan H2 scrap in Vietnam has increased. Offers have started to come at $470/mt CFR minimum, versus $460/mt CFR a week ago. One deal has been reported at $465/mt CFR this week, which is $7/mt higher than a contract concluded last week. “China’s billet market is strong and it will push scrap prices higher,” a source said. Offers for ex-US HMS I/II 80:20 by bulk have been heard at $475/mt CFR and above to Vietnam.
In Taiwan, offers for ex-Japan H1/2 have been at $460-465/mt CFR, with no interest from buyers.