Japan: H2 scrap export offers remain unchanged w-o-w

Japan's H2 scrap export offers remained unchanged during the week, owing to mixed sentiments in the market coupled with the depreciation of the JPY against the USD. According to BigMint's latest assessment, the Japanese H2 scrap export offer remained unchanged w-o-w at JPY 50,200/tonne (t) ($332/t) FOB Tokyo Bay.

The steel scrap price index in Japan experienced a decline, as reported by the Japan Iron and Steel Association. This week, the average price for H2 furnaces across three regions of Japan was JPY 47,800/t ($316/t), marking a decrease of JPY 900/t ($6/t) compared to the previous week. Kanto recorded JPY 49,200/t ($326/t), down JPY 1,000/t ($7/t) from the previous week, rprices at Chubu stood at JPY 46,500/t ($308/t), down JPY 800/t ($5/t), and in Kansai prices were at JPY 47,800/t ($316/t), down JPY 1,000/t ($7/t) w-o-w.

Other market updates

Vietnam: Vietnamese buyers exhibited limited interest in purchasing Japanese scrap due to discrepancies between bids and offers, as well as the availability of cheaper domestic scraps and ample inventory. Offers for H2 scrap from Japan were reported around $378-385/t CFR Vietnam, while bids from buyers were at $370-375/t CFR.

Taiwan: Feng Hsin Steel, Taiwan's primary rebar producer based in Taichung, central Taiwan, has announced a reduction of TWD 200/t ($6/t) in its rebar list prices for transactions occurring between 18-22 March. However, the procurement price for local scrap remains unchanged for the current week.

As per officials, the mini-mill is offering its 13mm diameter rebar at TWD 19,200/t exw for discussions until the end of this week. Despite recent declines in international scrap prices, the steelmaker's purchasing price of local HMS 1&2 80:20 scrap remains stable at TWD 10,700/t. Mini-mills across Taiwan are maintaining their procurement prices for local scrap this week to monitor potential market changes in the upcoming week. There is a belief among them that global scrap prices may soon reach a bottom after consistently falling since late January.

South Korea: South Korean buyers have reportedly withdrawn from the seaborne market, opting instead for opportunities in the domestic market amid subsequent price cuts by domestic mills. Major steel producers in South Korea, including POSCO and Hyundai Steel, intend to decrease scrap procurement prices by KRW 10,000/t ($8/t) effective from 21-22 March. Hyundai Steel anticipates persistently low prices due to weak demand, declining international prices, and decreased profitability, exacerbated by production cuts.

Outlook

Japanese H2 scrap export offers are likely to undergo slight corrections in the near term, attributed to subdued demand from key importing nations.