Higher prices for ex-Japan scrap have been confirmed in fresh deals to different destinations this week - to S. Korea and Taiwan for instance. Prices in the local market in Japan have also continued to go up, with Tokyo Steel announcing another round of increases on Friday.
One South Korean mill has voiced its bids for H2 scrap from Japan at JPY 42,500/mt ($400/mt) FOB, up by JPY 2,000/mt ($19/mt) from the previous bid from Hyundai Steel earlier this month. Some tonnages have been booked at the new level, but the amount has not been finalized. At the same time, this price level seems the lowest possible in the export market in Japan.
The latest bookings for ex-Japan H1/2 50:50 by bulk have been done at $440-445/mt CFR to Taiwan this week, which is equivalent to about JPY 43,500/mt ($409/mt) FOB, according to market sources. By the end of the week, offer prices for Japanese scrap to Taiwan have reached $450-455/mt CFR and new deals at this level are expected soon.
Though no new deals have been heard from Japan to Vietnam so far, the tradable value has increased. For now, buyers may purchase H2 at $450-455/mt CFR, up from deals at $425/mt CFR last week. In the middle of the current week, Japanese exporters were asking for $450-460/mt CFR, as SteelOrbis reported earlier, but by Friday they have increased offers to $460/mt CFR and above.
The SteelOrbis reference price for ex-Japan H2 scrap has increased to JPY 42,500-43,500/mt ($400-409/mt) FOB this week, up by JPY 1,500-2,000/mt ($14-19/mt) since early this week.
The main Japanese EAF-based steel producer, Tokyo Steel, has announced another round of increases in its local scrap purchase prices on Friday, February 25, up by JPY 500-1,000/mt ($5-9/mt) this time.
The H2 price levels at Tokyo Steel’s Tahara and Utsunomiya plants have added JPY 1,000/mt rising to JPY 41,000/mt ($386/mt). While at Okayama, Kyushu and Takamatsu, they have increased by JPY 500/mt to JPY 40,500/mt ($381/mt), JPY 40,000/mt ($376/mt) and JPY 39,500/mt ($371/mt), respectively. The previous price change the company made was just on February 23. All prices are delivered and effective from February 26.