Japan: Exported scrap prices rise w-o-w amid limited supply

Exported H2 scrap prices for Japan witnessed a rebound throughout the week, following limited offers. Meanwhile, the Taiwan market procured Japanese scrap at elevated prices.

Sources informed SteelMint that a Taiwanese mill purchased Japanese H1/H2 50:50 scrap at a price range of $373-$380/t CFR Taiwan. The most recent transaction was concluded at $380/t CFR.

SteelMint's assessment for Japanese H2 scrap prices stand at JPY 47,500/t FOB. Prices increased by JPY 1,000/t w-o-w on limited trade.

Electric furnace manufacturers in Osaka are raising their purchase prices for steel scrap by JPY 1,000-1,500/t. Bid prices for district manufacturers hovered around JPY 46,000-48,000/t for H2 scrap, suggesting a stabilisation.

Overall, the Japanese market is in a wait-and-watch mode. The market showed signs of stability after a decline albeit with limited upward movement.

Other market updates

South Korea: South Korean mills remained inactive and quiet during the week. Hyundai Steel, a prominent South Korean steelmaker, avoided issuing a tender for seaborne scrap during the weekend. Other mills in the region also displayed limited activity.

Mills appear to be adopting a cautious approach towards purchases at this juncture. Also, due to rapid weakening of the Japanese yen, higher offer prices are expected in the near future, sources aware of the matter said. They further said that South Korean mills do not feel the need to rush due to potential cuts in production plans.

Vietnam: During the week, Vietnamese mills remained inactive exhibiting inactivity. However, offers for the Japanese material continued to decline throughout the month after the Kanto tender concluded at lower bids. Fresh H2 offers are at $380/t CFR. Buyers are looking for workable price levels, and bid prices remain lower by $10-15/t levels at $365-370/t CFR.

Outlook

As the current supply in the market is limited, it is expected that the market might witness an uptrend. In the near-term, the market might continue to rise as a result of a depreciating JPY.