This week, Japanese scrap exporters have decided to increase their offer prices amid the rebound in dock prices in the country. Most sellers have been holding back their offers, waiting for the market to change. Most buyers have remained bearish so far, which has resulted in muted trading.
The SteelOrbis reference price for ex-Japan H2 scrap has increased to JPY 36,500-37,500/mt ($347-356/mt) FOB, up by JPY 1,250/mt ($12/mt) on average week on week. “The FAS dock price has rebounded for three days already. Slow, but steady. Now suppliers are holding back from selling,” a Japanese trader said. FAS prices have added at least JPY 2,000/mt ($19/mt) this week, according to sources.
Offers have been different to different sales destinations, but all of them are higher than last week. For instance, offers to S. Korea have increased to JPY 36,500-37,000/mt ($347-352/mt) FOB. However, buyers have not responded to this, with the latest bids still not above JPY 35,000/mt ($333/mt) FOB.
Offers to Vietnam for H2 scrap have also increased to $390-400/mt CFR. Last week, a deal was reported at $380/mt CFR and after that prices touched their lowest level for now at $375/mt CFR, sources told SteelOrbis. “Bids are still at around $360-380/mt CFR in Vietnam for H2, but offers are already heard at $400/mt CFR,” a source said.