Japan: H2 scrap export offers drop by JPY 800/t ($6/t) w-o-w amid dull demand

The export offers for Japan's H2 scrap experienced a decline of JPY 800/tonne (t) ($6/t) this week, following six consecutive weeks of increases. The decrease can be attributed to diminished demand from the traditional import markets and a weakened Japanese yen against the USD. SteelMint's weekly assessment of the H2 scrap export offer stood at JPY 51,000/t ($358/t) this week in comparison with JPY 51,800/t ($364/t) a week ago.

In the Nagoya region, ferrous scrap prices ranged from JPY 35,500-36,500/t amid limited availability, as reported earlier by SteelMint.

Other market updates

Vietnam: During the week, Vietnamese mills displayed minimal interest in Japanese H2 scrap imports, citing a notable difference between bid and offer prices. While Japanese H2 scrap export offers to Vietnam were reportedly in the range of $400-405/t CFR, feasible and acceptable levels were noted at $390/t CFR.

A spokesperson from a steel mill remarked, "We are currently abstaining from bidding due to the substantial price disparity."

Taiwan: In Taiwan, the availability of ample inventories led to only limited interest in imports during the week. Offers for H1/H2 50:50 scraps from Japan were observed at $393/t CFR Taiwan, reflecting a $2/t decrease from the previous week's $395/t CFR. However, bids were recorded at $385/t CFR.

Additionally, a transaction involving H1/H2 scraps from Japan was finalised during the week, although the exact quantity could not be confirmed at the time of reporting.

South Korea: South Korean mills refrained from participating in the seaborne H2 grade market because domestic scrap prices were still lower than imported scrap.

Outlook

The export offers from Japan are expected to experience volatility due to currency fluctuations. Additionally, there is limited interest from buyers in importing, primarily attributable to bid-offer disparities.