Demand for scrap has been lower in Asia this week due to holidays in Vietnam and Taiwan on Thursday and Friday respectively. Nevertheless, the still aggressive price policy of Japanese sellers has attracted buyers. Some cautious optimism has started to appear in the market as major suppliers like Japan and the US have been already cutting collection.
South Korea
A contract for Japanese H2 scrap has been signed at JPY 22,000/mt ($203/mt) CFR to Dongkuk Steel, while Hyundai Steel has decided to stay away from purchases this week. The price corresponds to JPY 19,500-20,000/mt ($180-184/mt) FOB, which is JPY 1,000-1,500/mt ($9-14/mt) down compared to deals to Hyundai Steel last week and JPY 500/mt ($4.6/mt) below small contracts concluded with some other South Korean customers early this week. According to Japanese sellers, the gap between the local and export prices has narrowed much and they have started to cut scrap collection. Resistance to further price decreases from the exporters’ side will be higher in the near future.
Moreover, in total less than 10,000 mt of Russian 3A scrap have been sold to South Korea at $210/mt CFR, down $37/mt compared to the deal reported on March 18.
Taiwan
Ex-US HMS I/II 80:20 in containers have been sold at $205-207/mt CFR Taiwan during the week, $3-5/mt below last week, though overall demand has been limited. There have still been no disruptions in supply from the US. However, taking into account the rapid spread of Covid-19 in the country, supply concerns have persisted, according to sources.
Japanese scrap has also attracted some customers. Japanese HMS I/II 50:50 has been offered in Taiwan at $220/mt CFR on average, down $5/mt from last week. “I don’t think that prices have space to fall further,” one of the customers has said.
Vietnam
Offer prices for Japanese H2 have been heard at $220-225/mt CFR in Vietnam, $10/mt below last week. A contract for 10,000-15,000 mt has been signed at the lower end of the range, sources have said.
Japanese scrap has been the best option for Vietnamese customers as, though ex-US scrap prices have been also going down, it has been more risky to purchase from the US. Offers for HMS I/II 80:20 by bulk have dropped by $10/mt over the past week to $235-240/mt CFR Vietnam.