Scrap offer volumes from US and Japanese suppliers to Asian customers in Taiwan, Vietnam and South Korea have improved this week. Prices have stopped going up and some suppliers have decided to give small discounts to accelerate sales.
Japanese exports
Ex-Japan H2 scrap prices have been stable at JPY 21,000-21,500/mt ($197-202/mt) FOB thıs week. Local demand has remained limited and exporters have been interested in sales ahead of the Golden Week holidays. About 10,000 mt of H2 have been sold to South Korea at JPY 21,000/mt FOB, though bids did not exceed JPY 20,000/mt FOB last week. The South Korean import market has been inactive in general, but if mills need to buy some small tonnages, they have to accept ex-Japan offers, sources have said. The higher end of the range - JPY 21,500/mt FOB - corresponds to offers to Southeast and East Asia. “Demand from Taiwan and Vietnam kept prices stable,” a source said.
Taiwan
Offer prices for ex-US HMS I/II 80:20 in containers have been heard at the same level as last week, at $225/mt CFR, while bids have been mostly at $220/mt CFR. As a result, some tonnages have been traded at $220-223/mt CFR compared to the highest deal price at $227/mt CFR late last week. “There are more offers from the US for 5,000 mt batches each,” one of the Taiwanese importers told SteelOrbis.
Japanese suppliers have been also trying to accelerate sales ahead of the Golden Week holidays (will last until May 6). Offers for H1/2 50:50 scrap in bulk slipped by $3-5/mt to $230-232/mt CFR. Deals have been at $228-230/mt CFR, sources have said. Late last week, the highest level of transactions was at $232-235/mt CFR.
Vietnam
There have been no reports of fresh deals for imported scrap in Vietnam this week. Offers for Japanese H2 have been unchanged at $235-240/mt CFR Vietnam, but bids have not been above $230/mt CFR. Customers have decided to wait for a clearer price trend after the early May holidays before further purchases. The indicative level for HMS I/II 80:20 has remained at $250-255/mt CFR Vietnam.
