Japan: Ferrous scrap export offers remain high; trades remain limited

Japanese scrap export market remained less active this week. Offers for Japanese bulk H2 stands at around $305-310/t CFR Vietnam level, while bids were reported at $ 295-300/t basis. Bulk scrap offers for Japanese H2 to Bangladesh have increased slightly by $5 to $312/t CFR Chittagong basis over a week.

South Korean major - Hyundai Steel did not make any bid for Japanese scrap this week as the last bids price were fallen by $10-14 and was set at JPY 26,000/t for H2 grade scrap towards the last week's closing. However, deals have not concluded as bids were comparatively low, which is not acceptable by the Japanese suppliers. Suppliers have quoted offers at around JPY 27,000- 28,000/t FoB level for Japanese H2 scrap.

SteelMint's assessment for Japanese scrap export stands stable at JPY 27,000/t FoB Japan.

Hyundai Steel booked bulk Russian scrap cargo - Hyundai steel had concluded a deal earlier this week, in which 20,000 t of Russian A3 grade scrap got booked at $281/t CFR Korea, sources have reported to SteelMint. The price is dipped by $22/t against the last Russian cargo was booked at $303/t CFR basis on 18th Sep'20.

Tokyo Steel raised domestic prices twice this week - Japan's prominent steel manufacturer -Tokyo Steel has revised its domestic scrap purchase price twice this week for two of its plants- Okayama and Takamatsu steel center, increasing by JPY 500/t on 21st Oct and JPY 1,000/t on 23rd Oct'20. While the price for other three works kept unchanged for now. The main focus was to reduce the gap between purchase price and domestic market price, mainly in Okayama plant which is located near Kyushu factory.

After the second price adjustment, the company is now paying JPY 27,000/t ($258) for Okayama plant and JPY 26,000/t for Takamatsu steel plant, effective from today (23rd Oct'20).