Japanese ferrous scrap suppliers have cut prices for all major trade destinations, trying to accelerate sales, even despite the higher-than-expected results of the Kanto Tetsugen tender on Wednesday this week. Exporters have felt negative influence from the stronger local currency and have been trying not to lose their competitiveness.
Prices for ex-Japan H2 scrap have slipped by JPY 500-1,000/mt ($4.7-9.4/mt) over the past week to JPY 22,000-22,500/mt ($206.5-211.1/mt) FOB.
Hyundai Steel announced on March 12 its new bid prices for Japanese H2, which have decreased by JPY 1,000/mt to JPY 22,000/mt FOB. The majority of exporters have been reluctant to give this level, but some limited quantity have been traded.
The sentiment in the Vietnamese market has also worsened. Offers for H2 has been heard at $245-250/mt CFR, $5/mt below last week. A deal has been done at the lower end of the range this week. $245/mt CFR Vietnam is equivalent to JPY 22,300/mt FOB.
Ex-Japan offers to Taiwan for HMS I/II 50:50 have slipped by $2-5/mt to $240-245/mt CFR.
“No one can resist the wave of decrease,” an Asian trader said.