Japan: Ferrous scrap export prices move down in absence of firm bids

Japan's scrap export trade slowed down this week, owing to constrained demand from end users. Major scrap buyers like South Korea and Vietnam are struggling with sluggish demand from domestic and overseas buyers. In the absence of enquiries, Japanese scrap export offers climbed down slightly this week.

SteelMint's assessment for Japanese H2 scrap export prices stands at JPY 48,500/t ($339/t) FOB, down by JPY 1,500 ($10/t) w-o-w.

Buyers are waiting for market clarity as prices are unstable. Buyers from South Korea and Vietnam are far less active in booking fresh slots, whereas Bangladeshi buyers booked last deals at Japan's Kanto scrap export tender.

Buyers' market remains negative

• South Korean buyers absent: South Korean buyers are absent in the Japanese market. Meanwhile, major mills like Hyundai Steel, YK Steel and Daehan Steel increased domestic scrap procurement prices earlier in the week by KRW 20,000/t ($15/t), as per a Steel Daily report.
  
  
• Bangladesh mills quiet: After a 15,000 t bulk cargo booking in Japan's Kanto scrap export tender from a major mill in Bangladesh, other mills remain silent. However, other mills showed interest in Japanese material and booked bulk cargoes from the US in view of cost competitiveness. No firm indications were recorded after the tender.
  
  
• Vietnam mills maintain silence: Vietnamese buyers maintained their silence for yet another week. However, imported scrap offers moved down in the absence of buyers and dull finished steel demand. Indicative offers for Japanese bulk H2 scrap were heard at $410/t CFR, unchanged compared to the beginning of September.
  
  

Tokyo Steel's buy prices unchanged: Japan's major EAF steelmaker, Tokyo Steel, kept its scrap purchase prices unchanged this week. The company kept its bids for H2 at JPY 51,000/t ($359/t) delivered to the Tahara and Utsunomiya plants, as per price adjusted a week ago.

Outlook: Japanese scrap export trade is likely to remain slow on negative market sentiments. Meanwhile, prices inched down slightly in the absence of domestic and overseas buyers.