Japan: Domestic ferrous scrap prices rise tracking export market trends

Domestic Japanese scrap prices increased lately after witnessing a rebound in the export market, SteelMint understands. Tokyo Steel announced two price hikes this week. In their first announcement, the company raised bids by up to JPY 1,000/tonne (t) ($9/t) effective 15 Sept'21. However, prices for the Tahara and Utsonumiya works were kept unchanged. Another price hike of JPY 1,000/t ($9/t) was announced today (17 Sept'21) for four of its steelworks, except Utsonumiya, effective 18 Sept. Post-revision, the company's bid prices for H2 scrap will be at JPY 49,000/t ($446) for the Tahara steelworks.

Source: Tokyo Steel
Prices in JPY

Japanese scrap export prices for Vietnam rose in recent deals. However, other countries like South Korea and Bangladesh stayed away from booking Japanese cargoes. SteelMint's assessment for Japanese scrap export offers stand at JPY 47,500/t FOB, up by JPY 2,500/t w-o-w.

• Vietnamese mills active in booking Japanese scrap: Ferrous scrap import prices into Vietnam increased from the major scrap sourcing markets like the US and Japan. A scrap importer has booked US-origin bulk scrap cargo, consisting of 30,000 t of HMS 1&2 (80:20) at $490/t CFR last week, sources informed SteelMint.
  
  

Fresh offers, at present, for Japanese H2 are being quoted at $485-490/t CFR Vietnam levels, up considerably by $15-20/t w-o-w. SteelMint learnt that few deals for bulk H2 were reported at $487/t CFR Vietnam recently.

• Japanese scrap offers to Bangladesh rise: Japanese scrap export offers into Bangladesh surged again after observing a downturn in the last few weeks. A significant hike of $30-40/t CFR in imported scrap was seen due to high freight rates from Japan to Bangladesh. However, few deals for bulk cargoes are likely to happen as negotiations are going on.
  
  
• China's ferrous scrap import market quiet: China's ferrous scrap import market remained silent as deals dried up from Japan, as per latest updates received. Bids from Chinese buyers for HRS101 grade scrap are at $520/t CFR while offers are at $575-580/t CFR. Chinese buyers have kept themselves away from booking Japanese material owing to dull demand due to steel production cuts.
  
  
• Hyundai Steel lowers bids for Japanese scrap: Hyundai Steel reduced bids for Japanese ferrous scrap by JPY 1,000/t ($9/t) for premium Shindachi bara scrap and JPY 500/t ($5/t) for other grades on 13 Sept'21 as compared to its last bid on 27 Aug'21.
  
  

1. Bids for H2 scrap are now at JPY 43,500/t ($395/t) FOB. Bids for Shindachi bara scrap are at JPY 61,500/t ($558/t) FOB and are valid till 14 Sept'21. It would be interesting to see whether Japanese suppliers will accept at these bids.

2. On the other hand, SeAH Besteel has recently booked a small quantity of shredded at JPY 60,500/t CFR. The company is showing interest in purchasing high-grade scrap on increased demand from end-users.