The uptrend in the Asian scrap market has not fully started yet as Japanese suppliers are still ready to give small discounts. At the same time, suppliers from the US have increased their offers.
Offer prices for ex-US scrap HMS I/II (80:20) for Taiwan have gone up by $5-10/mt over the past week to $230-235/mt CFR. Some contracts have been signed at $230/mt CFR, which is $4-5/mt above the deals last week, SteelOrbis has learned.
In Vietnam “the uptrend has not come yet but hope the price increase will be soon,” a local trader said. Offers for ex-US HMS I/II (80:20) by bulk have been still at $250-255/mt CFR.
The last booking for Japanese H2 scrap have been heard at $240/mt CFR, $3-8/mt below the offer level of last week. Moreover, bids have already slipped to $237/mt CFR.
Japanese suppliers are still more flexible due to the recent decrease in export tenders and still weak local market. As SteelOrbis reported earlier, Japanese H2 scrap has been sold to South Korea at JPY 22,000/mt ($202/mt) FOB last week. Moreover, Tokyo Steel announced on October 18 that it will cut its local scrap purchasing prices for one plant - its Tahara factory - by JPY 500/mt ($4.6/mt) to JPY JPY 22,000/mt ($202/mt) delivered. The price is effective from October 19.