Imported scrap prices have increased further in the Asian market this week. Taiwanese and Vietnamese customers have accepted a hike after deals at higher prices, registered in South Korea and in the Kanto Tetsugen export tender earlier this week. Nevertheless, customers are cautious in their expectations for the future.
Japanese exports
Ex-Japan H2 scrap prices have remained at JPY 23,000/mt ($215/mt) FOB late this week, stable from Tuesday, but JPY 1,500-2,000/mt ($14-17/mt) above last week’s level. Exporters have not been willing to give discounts after the Kanto Tetsugen export tender closed with an increase on May 12 and a 50,000 mt sale of Japanese H2 scrap to South Korea at this new level.
Sales to Taiwan and Vietnam have been just for low volumes of Japanese scrap, but customers had no other option but to accept price increase in these bookings, sources have said.
Early this week, ex-US HMS I/II 80:20 scrap in containers has been traded at $225/mt CFR Taiwan, which is in line with the highest bookings last week, but late this week deal prices have already risen to $230/mt CFR. “There were not many offers this week, so mills purchased at higher prices,” an importer from Taiwan said. “Rebar prices have rebounded in Taiwan, so there is a balance with scrap,” another customer said. Over the past week, prices for ex-US scrap have increased from $220-225/mt CFR to $225-230/mt CFR Taiwan.
Ex-Japan H1/H2 50:50 scrap prices have increased at a higher pace to customers in Taiwan - by $10-15/mt over the week to $245-250/mt CFR. Some offers have been at $253/mt CFR, sources have said, but bids have not been above $245/mt CFR Taiwan.
Most market participants believe that some slight scrap price increase is still possible in Taiwan next week, but the space for upward movement is limited. Moreover, the recent drop in scrap prices in Turkey may hurt sentiment in Asia.
Offers for Japanese H2 scrap have increased to $250-255/mt CFR in Vietnam this week, up by $10/mt compared to last week. However, while bid prices were mostly at $230-235/mt CFR in Vietnam last week, this week a 5,000 mt booking has been heard at $245/mt CFR. Moreover, a sale to southern Vietnam has been concluded at above $250/mt CFR. Market sources have said that most suppliers have been rejecting bids at below $250/mt CFR recently.
Vietnamese customers have been interested in buying small volumes of Japanese scrap, as offers for HMS I/II 80:20 have increased to $260-265/mt CFR and supply has been reduced.
