Offers prices for ex-Japan H2 scrap have increased by JPY 1,000/mt ($9.3/mt) this week, following higher prices in the local market. Nevertheless, foreign buyers have taken a pause from purchases so far.
Offers for H2 scrap from Japan have increased to JPY 24,000-24,500/mt ($223-227/mt) FOB compared to the workable level at JPY 23,000-23,500/mt ($213-218/mt) FOB last week. “We are trying to get this price, but are not sure if the buyers can accept it right now,” a Japanese seller said.
The export price hike has followed a further increase in the Japanese domestic market. On Tuesday, May 26, Tokyo Steel announced another scrap purchase price change with prices adding JPY 500-1,000/mt ($4.6-9.3/mt).The prices for H2 scrap at the Tahara facility have increased the most, by JPY 1,000/mt to JPY 20,500/mt ($190/mt). Prices for Okayama and Kyushu have increased by JPY 500/mt to JPY 19,000/mt ($176/mt). The price level at Takamatsu is still the lowest at JPY 18,000/mt ($167/mt), delivered. And the prices for Utsunomiya, the most important for the foreign market, have reached JPY 20,000/mt ($186/mt). The new prices will be effective from today, May 27. Market participants said that the domestic price level is still lower than prices in the international market and so exports are still more attractive for suppliers. But if local prices in Japan continue to rise, this will support export prices, sources have said.
Other scrap suppliers in the Far East have also attempted to increase prices. Offers for ex-Russia A3 scrap have increased to $245/mt CFR South Korea, while the previous deals for this grade were at $239/mt CFR. There has been no confirmation of deals so far.