Suppliers have increased their scrap prices in the Asian market this week and the hike has been accepted by buyers in almost all major countries - South Korea, Taiwan and Vietnam. Seeing a positive mood in Turkey and an overall improvement in the rebar and billet segments in Asia, customers have decided to accept import scrap prices and some further increase is also possible, SteelOrbis has learned in the market.
South Korean customers resist price increase, bids still low
As SteelOrbis reported earlier, one deal for Japanese H2 scrap has been done in South Korea at JPY 23,000/mt FOB, which is JPY 1,000/mt above Hyundai’s bid early this week and a small sale of 10,000 mt at this level. Also, it is in line with the indicative level heard last Friday, but which had not been confirmed by a deal at that time. Today, Friday, July 17, some sources said that there has been more than one deal at JPY 23,000/mt FOB in South Korea and this reflects the current buying price in the country.
Nevertheless, most large steel producers are still bidding at JPY 22,000-22,500/mt FOB for H2, SteelOrbis has learned. Overall buying activity has been weak. Market participants expect more purchases of higher grade shredded scrap from Japan in the near future. The price level for this grade is JPY 25,000-25,500/mt FOB.
This week, the deal price level for Japanese H2 scrap has reached JPY 23,000-24,000/mt FOB, taking into account sales to different sales destinations. The deal prices to South Korea have been at one of the lowest levels.
Taiwanese customers buy ex-US and ex-Japan scrap at higher prices
The latest deals for ex-US HMS I/II 80:20 by containers have been heard at $237-238/mt CFR to the south of Taiwan. This indicates an increase compared to contracts at $230-235/mt signed last week. But for now offers have increased to $240/mt CFR and any sales below $238/mt CFR are impossible, sources have said.
The latest booking for ex-Japan H1/2 50:50 has been reported at $254/mt CFR Taiwan, while offers have increased to $255-260/mt CFR. If compared to the previous bookings, transaction prices were $5-9/mt lower, sources confirmed. “Now buyers have decided to wait and see. Demand for rebar is not so bad, so I do not exclude some further [scrap] rise,” one of the importers said.
Scrap users in Taiwan mentioned a better mood in the rebar and billet markets recently after China resumed active billet bookings at higher prices.
Vietnamese interest in scrap bookings, seeing billet demand from China
The latest deals for Japanese H2 scrap in Vietnam have been heard at $250-255/mt CFR and slightly higher up to $260/mt CFR late this week. This means customers have accepted the price increases announced by sellers last week. The previous contracts have been mostly concluded at below $250/mt CFR. Customers have been willing to purchase and have decided to focus on Japanese material, seeing higher prices for material of other origins.
Sources report that high demand for imported billet from China, especially for billet of Vietnamese origin, have supported scrap prices. Though most sales of billet to China have been made from BF-based Vietnamese suppliers, this has significantly improved sentiment in the local market.
