Japan: H2 scrap export offers remain stable w-o-w; thin trades before Lunar New Year holidays

Japanese steel scrap export offers showed mixed trends this week, with lower-grade scrap prices declining while higher-grade variants remained firm due to tight supply. According to BigMint's latest assessment, Japanese H2 scrap export offers were stable w-o-w at JPY 41,600/t ($267/t) FOB Tokyo Bay.

Export demand was muted as East and Southeast Asia prepared for the Lunar New Year holidays. Many suppliers held back cargoes in hopes of price improvements after the holidays.

For higher-grade scrap, limited supply due to slowing automotive output helped keep prices steady w-o-w, with offers ranging at JPY 46,000-47,000/t FOB Japan. Similarly, H2 remained largely stable w-o-w at JPY 41,000-42,000/t ($263-269/t).

Tokyo Steel, Japan's largest EAF steel producer, revised its domestic scrap purchase prices at two of its facilities after over a month of stability. The company reduced its H2 prices by JPY 500/t ($3/t) at the Nagoya scrapyard and by JPY 1,000/t ($6/t) at the Utsunomiya steel plant. While the yen's slight strengthening against the US dollar mitigated the decline in dollar-denominated prices, scrap purchase prices at other plants remain unchanged in the yen. However, US dollar prices increased by $1/t since the last revision.

Other market updates

Vietnam: Japanese suppliers expected a price increase following the Kanto tender results, while Vietnamese buyers were hesitant to raise their bids. H2 scrap prices in Vietnam were at $312-315/t CFR, with tradable levels around $310/t. Bids stood at $295/t, with some offers falling below $305/t CFR.

For some buyers, workable levels for H2 scrap were approximately $305/t CFR Vietnam or JPY 40,500/t ($260/t) FOB Japan. Given the lower bids, suppliers were cautious, focusing on markets with higher price expectations.

Meanwhile, a Vietnamese mill was heard bidding JPY 46,700/t for HS, although most bids from the region were closer to JPY 45,200/t, indicating a conservative approach in their pricing expectations.

However, a Vietnam-based trader noted the lack of H2 offers received so far.

Taiwan: Feng Hsin Steel, Taiwan's largest rebar producer, maintained its rebar and local scrap prices for 20-24 January transactions. The company continued offering 13mm dia rebar at TWD 17,700/t ($541/t) exw, a four-year low, and local HMS (80:20) scrap at TWD 8,600/t ($263/t), unchanged since mid-December.

This steady pricing comes ahead of Taiwan's Chinese New Year holiday from 25 January to 2 February. Imported scrap prices in Taiwan showed mixed trends, with US-sourced HMS at $295/t CFR, largely stable w-o-w, and Japan-origin H2 at $300/t CFR, down by $5/t w-o-w.

South Korea: South Korean steelmakers maintained their bids for HS at JPY 49,000/t($313/t) and Shindachi scrap at JPY 48,000/t ($307/t) CFR Korea.

Regarding H2 scrap, South Korean mills estimated potential deal levels at JPY 40,000/t ($256/t) FOB Japan, but no firm bids were confirmed. The range for possible H2 deals stood at JPY 39,500-41,500/t ($252-265/t), reflecting a slight decrease compared to the previous week's prices. Sources suggest that while suppliers remained firm, buyers adopted a cautious approach, possibly due to fluctuating demand and seasonal factors.