As reported yesterday by SteelOrbis, several South Korean mills decreased bids for Japanese H2 scrap. The erosion in bids was not only for H2 scrap but also for other higher scrap grades. Sources inform SteelOrbis that mills placed bids at the levels in table below and obtained an excess of volumes offered at the desired price compared to the amount needed for purchase.
Despite agreement by some traders to sell at the prices below in the last few days, H2 scrap offers to the export market are reportedly at JPY 37,000-37,500/mt ($339-344/mt) FOB. These offers generally translate to $370/mt CFR Vietnam, $360/mt CFR South Korea and CFR Taiwan, according to estimates from a US-based source, although some more aggressive offers of up to $5/mt less are reportedly being heard in some markets.
*Rate on January 23, 2018
|
Japanese scrap grade |
South Korean bids JPY, FOB terms |
Rate* JPY/$ |
$/mt |
|
H2 |
36,500-36,900/mt |
110.26 |
$331-335/mt |
|
Shredded |
39,500/mt |
110.26 |
$358/mt |
|
Schindachi |
41,500/mt |
110.26 |
$376/mt |
USD = JPY 109.13 (Jan. 24)