Japanese scrap suppliers have increased sales volumes over the past week with Vietnamese customers returning to restocking, South Korean customers have raised booking volumes and deals have been also reported to Bangladesh and Taiwan. At the same time, the price trend has not been clear as to some countries exporters have decided to leave prices at the previous level, while bids from other customers have been higher.
The deal price level for ex-Japan H2 has remained at last week’s level of JPY 27,000-28,200/mt ($256-268/mt) FOB, as the lower end of the range corresponds to the latest contract to Hyundai Steel in South Korea, while the higher end shows the price to Bangladesh.
Hyundai Steel bought a total 50,000 mt of scrap from Japan this week against 30,000 mt last week. Prices for H2 have remained at JPY 27,000/mt FOB, but prices for HS scrap have increased to JPY 30,500/mt FOB. Also Dongkuk Steel purchased H2 scrap at JPY 27,200/mt FOB, JPY 300/mt below the contract last week. So to stimulate demand Japanese suppliers have kept prices at relatively low levels in South Korea this week.
Some discounts have been heard to Taiwanese importers with deals done at $285-286/mt CFR for H1/2 50:50 by bulk versus offers at $290-295/mt CFR last week.
However, customers from Vietnam have been more active this week with a number of contracts have been reported in the market. H2 scrap has been sold at $295/mt CFR Vietnam on average this week with $2-3/mt up and down. This price level was targeted by exporters last week, but demand was weak. At the moment, offers have already reached not below $300/mt CFR in Vietnam.
A contract for at least 10,000 mt of Japanese H2 scrap has been done at $303/mt CFR to Bangladesh over the week and the next deal price level is expected to be at least $305/mt CFR, sources have said.
