Japan: H2 scrap export offers drop further by JPY 600/t ($4/t) w-o-w

Japan's H2 scrap export offers saw a second consecutive weekly decline due to a lack of buyer activity amid year-end holidays. Moreover, Japanese traders adopted a more reserved approach in the seaborne market, refraining from active offerings due to pricing uncertainties during the holiday season.

According to SteelMint's weekly assessment, the H2 scrap export offer from Japan stood at JPY 50,400/tonne (t) ($357/t) FOB Tokyo Bay, marking a JPY 600/t ($4/t) decrease compared to the previous week's JPY 51,000/t ($361/t) FOB.

Other market updates

Vietnam: Japanese H2 scrap export offers to Vietnam stood at $400/t CFR, down by $5-10/t as against $405-410/t CFR a week ago. No deals were heard during the week as market participants were on a holiday mood. In the domestic market, a leading steel mill reported procurement prices of H1 grade scrap at VND 9,700/kg ($400/t) DDP and H2 scrap prices at VND 9,500/kg ($392/t) DDP.

"Finished steel sales and construction activities remained slow due to holidays," a Vietnam-based trader informed.

Taiwan: Taiwanese mills displayed limited interest in purchasing seaborne scrap, given the ample stocks available in the domestic market. As a result, offers for H1/H2 50:50 scraps saw a marginal decrease of $1/t, settling at $389/t CFR in Taiwan this week, as opposed to the previous week's rate of $390/t CFR.

South Korea: The imported scrap market in South Korea stayed quiet, with domestic prices persistently lower than those of imported scrap. Additionally, the holiday season kept market participants on the sidelines, contributing to the subdued activity.

Outlook

Japan's H2 scrap exports are expected to maintain a slow pace, primarily due to extended holidays until 8 January and the absence of strong demand from major importing countries.