While Japanese scrap market players have been trying to keep prices firm amid the ongoing good demand in the country, there is pressure on export prices due to the slower appetite received from foreign buyers. Vietnam have been exerting pressure on Japanese scrap prices and, since offers have declined week on week, they have been successful in their aim. South Korea remains absent, with South Korean producers still engaged in negotiations with labor unions. Japanese sources report that the market is waiting to see the result of the Kanto tender to be held next week.
US West Coast HMS I/II 80:20 offers for bulk cargoes are still in the range of $405-410/mt CFR Vietnam, SteelOrbis hears.
Japanese H2 scrap offers to Vietnam are at $380/mt CFR, $5/mt lower than the levels recorded in last week’s bookings. Meanwhile, Vietnamese mills’ bids have declined to $375/mt CFR, again $5/mt down week on week.
This week, SteelOrbis has learned that Japanese HMS I/II 50:50 offers to Vietnam are at $380/mt CFR, indicating a $10/mt fall week on week.
Today, October 6, Tokyo Bay FAS-based prices for H2 grade scrap are at JPY 51,500/mt ($345/mt). This level signals JPY 52,500/mt ($352/mt) FOB for this grade. Tokyo Bay FAS prices for HS grade scrap are now in the range of JPY 55,000/mt ($368/mt). Prices for shindachi scrap are at JPY 54,500/mt ($365/mt) FAS.
SteelOrbis’ reference price for ex-Japan H2 scrap has decreased slightly by JPY 700/mt on the lower end and moved up by JPY 500/mt on the upper end to JPY 50,000-52,500/mt ($335-352/mt) FOB. The lower end is represented by an ex-Japan H2 scrap booking to Taiwan, while the upper end is represented by the Tokyo Bay FOB prices.
$1 = JPY 149.36