South Korean and Vietnamese mills’ import scrap prices have declined in line with the negative sentiment in the international scrap market. Demand for finished steel has not recovered in the region and mills are still exerting pressure on prices. As a result, Japanese scrap suppliers have lowered their export quotations compared to last week.
SteelOrbis has learned that South Korean steelmaker POSCO has shared bids for Japanese HS scrap at JPY 57,500/mt ($383/mt) CFR, which indicates that FOB-based prices for HS scrap are at around JPY 54,500/mt ($363/mt). Market players state this level is JPY 1,000/mt lower than the steelmaker’s previous bid for this grade. A month ago, POSCO’s bids for Japanese HS grade scrap were at JPY 57,000/mt ($385/mt) CFR or JPY 54,000/mt ($365/mt) FOB, with the exchange rate standing at $1 = JPY 147.9. As a result, despite weekly fluctuations, the producer has not changed its prices much in the long term.
POSCO has also shared bids for Japanese shredded scrap at JPY 56,500/mt ($377/mt) CFR, which indicates that FOB-based prices are at around JPY 53,500/mt ($357/mt).
SteelOrbis also heard that Japanese H2 scrap offers to Vietnam are at $370-375/mt CFR, down from $380/mt CFR recorded two weeks ago. Some buyers target to buy Japanese shindachi scrap at $400/mt CFR Vietnam. Also, a deal for containerised HMS I/II 80:20 scrap was concluded at $370/mt CFR. Import activity remains quiet as Vietnam’s import scrap prices continue to move down in line with increasing international pressure. “Vietnamese producers are mostly focusing to their domestic market for scrap, demand for imports is very slow,” a Vietnamese-source commented.
SteelOrbis’ reference price for ex-Japan H2 scrap has moved down by JPY 2,000/mt on the lower end and by JPY 500/mt on the upper end this week to JPY 49,000-52,000/mt ($325-345/mt) FOB. Due to the depreciation of the yen, dollar-based quotations have declined by $9/mt on the lower end and by $6/mt on the upper end week on week. The lower end is represented by Vietnamese producers’ ex-Japan H2 scrap bookings, while the upper end is represented by Taiwan’s purchase prices.
$1 = JPY 149.95