Japanese scrap exporters have faced some slowdown in their sales but have been not ready to provide discounts, seeing stronger demand in their local market and a hike in offer prices from other scrap exporters in the region.
The reference prices for Japanese H2 scrap have remained at JPY 26,500-27,000/mt or $247-252/mt FOB so far, but most offers are coming at JPY 27,500/mt ($256/mt) FOB. Exporters believe that they will be able to increase deal prices above JPY 27,000/mt FOB soon as availability of scrap is not increasing. Especially after US-based suppliers managed to increase deal prices, about 32,000 mt of ex-US H1 scrap was traded at $282/mt CFR South Korea recently. In the middle of May, HMS I/II (80:20) from the US were sold at $255/mt CFR to South Korea.
On Tuesday, June 16, Tokyo Steel announced a further local scrap purchase price increase for four plants out of five this time. Prices for H2 scrap for its Tahara, Kyushu and Takamatsu plants have added JPY 500/mt ($4.7/mt) to JPY 23,500-25,000/mt delivered. At the same time, prices at Okayama have increased by JPY 1,000/mt ($9.3/t) to JPY 24,500/mt. The highest level is still for Utsunomiya at JPY 26,500/mt ($247/mt), unchanged. Prices are effective from June 17. The previous changes were made by Tokyo Steel on Friday, June 12.
