Japan: Scrap export offers fall further with no buyers

Japanese scrap export prices have continued to move downward whereas buyers remained cautious amid sluggish finished steel demand. Major buyers like Vietnam, South Korea and Bangladesh have kept fresh bookings slow, waiting for a clearer market picture.

SteelMint's assessment for Japanese H2 scrap export prices stands at JPY 48,000/t ($336/t) FOB, down by JPY 500/t ($3/t) w-o-w.

However, some steelmakers in urgent need of scrap increased their bid prices, while others chose to bid for the domestic material.

Buyers' market overview

• South Korea's Hyundai Steel decreases bid for Japanese scrap after 3-week gap: Hyundai Steel decreased Japanese scrap bids sharply by JPY 1,300/t ($9/t) for H2 and by JPY 1,500/t ($10/t) for HS-grade against the last bid presented on 30 August 2022. Bid for H2 scrap stands at JPY 48,500/t ($335/t) while that for HS is at JPY 54,000/t ($373/t) FOB. The steel major has cut bids to influence domestic prices which have greatly increased.
  
  

On the other hand, the company is likely to cut scrap purchase prices for its Pohang plant by KRW 20,000/t ($14/t) of all grades, effective from 28 September, as per SteelDaily reports.

• Bangladesh mills extend silence: Bangladeshi mills have continued to extend silence as the major ones booked bulk cargo in the Kanto tender. Meanwhile, bulk offers remain on the lower side, which may increase interest for bulk cargoes ahead of the favourable construction season. Indicative prices for Japanese H2 were heard at $440/t. However, buyers' interest remained less.
  
  
• Vietnamese buyers remain less active: Despite offers falling, imported scrap buyers remained less active in the market. Vietnam's buyers maintained their silence for yet another week. Indicative offers for Japanese bulk H2 scrap were heard at $405/t CFR, unchanged compared to Monday.
  
  

Tokyo Steel cuts scrap buy prices after almost two months: Japan's major EAF steelmaker, Tokyo Steel, decreased scrap purchase prices after a gap of almost two months. The company lowered bids for H2 scrap by up to JPY 1,500/t ($10/t) for all its plants. After the second adjustment in the week, bid prices for H2 scrap stand at JPY 49,500/t ($340/t) delivered to the Tahara plant, while prices for Utsunomiya remain at JPY 50,500/t ($347/t).

Outlook: Japanese scrap offers are likely to remain under pressure on the back of limited inquiries and sluggish demand.