Japan: Ferrous scrap prices fall on lower bids

Japanese scrap export prices fell this week as the Korean, Vietnamese and Bangladeshi mills seemed to be less interested in bidding. SteelMint's price assessment for Japanese H2 scrap exports stood at JPY 47,500/tonne (t) FoB, down by JPY 500/t compared to last week.

Imported scrap prices in Vietnam slump: Imported scrap offers into Vietnam for bulk Japanese H2 tumbled around $5/t to $495/t CFR Vietnam. The domestic steel market sentiments remained gloomy due to the worsening Covid situation and disparity in bids and offers, resulting in limited trade.

Chinese mills preferring imported billets: The bid and offer discrepancy for HRS101 scrap kept buyers away from the market. Bids are hovering at around $540/t CFR levels, up by $10/t w-o-w. However, offers are at the same levels as last week at $570-600/t CFR. China's largest EAF steelmaker, Shagang Jiangsu Steel, announced the first hike in domestic scrap procurement price on 19 Jul'21 for this month. The company increased prices by RMB 80/t ($12/t) for all grades.

Chinese buyers are showing more interest in semi-finished steel (billets) instead of scrap, SteelMint learnt from market sources. Steeper steel production cuts in H2CY'21 have supported demand for imported billets in China. Bids are currently hovering at around $710-715/t CFR.

Bangladesh bulk scrap market at standstill: The Bangladesh government has further extended its lockdown restrictions from 23 Jul-5 Aug'21, now ordering shutdown of manufacturing plants, SteelMint learnt from market sources. In addition, trading was affected due to the Eid holidays from 19-22 Jul'21. Thus, the imported scrap market remained largely quiet this week with only a few container bookings done.

Tokyo Steel cuts scrap purchase prices: Japan's leading EAF steel mill, Tokyo Steel, announced its second revision in regard to scrap buying on 19 Jul'21, effective from 20 Jul. The company decreased prices by JPY 500-1,000/t ($5-9/t) for four of its steelworks, excluding the Utsunomiya plant. After the revision, the company would pay a bid price for H2 scrap at JPY 50,000/t ($455/t) for the Tahara works. However, prices stay stable for the Utsunomiya plant at JPY 49,000/t ($446/t).