Scrap prices in Asia have increased slightly this week, which has been confirmed in transactions to major buyers in Vietnam, South Korea and Taiwan. Nevertheless, until the end of this week most customers have decided to take a wait-and-see position, not seeing possibilities for prices to go up much higher.
Japanese exports
Ex-Japan H2 scrap prices have added JPY 500/mt ($4.6/mt) over the past week to JPY 23,500/mt ($219/mt) FOB. Sales to Vietnam and South Korea have supported this increase, but overall demand from overseas has been not very high. Most market participants have said that supply volumes from Japan have been stable or even increased for some grades after Japan lifted the state of emergency across most of the country.
Moreover, demand in the local market has started to improve. As SteelOrbis reported yesterday, Tokyo Steel has increased its scrap purchase prices for the first time this calendar year, by JPY 1,000/mt.
South Korea
Though during most of the week customers from South Korea have been quiet, late this week one of mills has decided to purchase Japanese scrap with the H2 scrap price in this deal at JPY 23,500/mt ($219/mt) FOB, up by JPY 500/mt from the previous transaction level last week. Overall demand from South Korea has been weak, with some reports of production cuts at some mills due to slower demand from downstream industries.
There have been no new deals reported for Russian or American scrap to South Korea. The previous bookings for A3 from Russia were at $239/mt CFR and at $255/mt CFR for Australian HMS I/II 80:20.
Taiwan
The latest deals for ex-US HMS I/II 80:20 scrap in containers have been heard at $230/mt CFR Taiwan and about $1/mt higher, while last week bookings were mainly at $225-230/mt CFR. Offers have increased by $5/mt over the past week to $235/mt CFR, but customers have been reluctant to accept a further increase. “This week is very similar to last week. Supply from the US has not improved. It is as before,” a Taiwan-based source said.
Ex-Japan H1/H2 50:50 scrap prices have remained almost at the same levels as last week, at $245-255/mt CFR. And demand has been weak as customers prefer ex-US scrap. Bids have been at $240-245/mt CFR Taiwan.
Vietnam
A recent deal for Japanese H2 scrap to Vietnam has been heard at $255/mt CFR, against deals mostly at $245-250/mt CFR last week. Sources said that this contract was signed on Wednesday or Thursday and after that customers have decided to take a pause from imports.
Some offers for HMS I/II 80:20 have been heard at $270/mt CFR after a booking for Australian scrap at slightly below $260/mt CFR a week ago.