Japan: Scrap export prices continue to weaken on lower bids

• South Korean mills book Japanese bulk cargo
  
  
• Bids in Vietnam drop on subdued steel prices
  
  
• Bangladesh mills prefer EU bulk cargoes over Japanese
  
  
• Tokyo Steel purchase prices fall to four-month low
  
  

Japanese scrap export trade resumed this week with lower offers. The export trade had remained limited over the last few weeks, owing to the disparity in bids and offers. However, many overseas buyers like South Korea, Vietnam, and Taiwan were waiting for further price discounts.

Meanwhile, Japanese suppliers were actively trading in the domestic market, it being more cost-competitive. Following the global downtrend, Japan's Tokyo Steel has also continued to lower its domestic scrap purchase price for the second sequential month.

SteelMint's assessment for Japanese H2 scrap export prices stands at JPY 52,000/t ($385/t) FOB, down by JPY 1,000/t ($7/t)w-o-w.

Buyers market overview

• South Korean mills book Japanese scrap: South Korea's Daehan Steel and YK Steel have signed a contract for 20,000 t Japanese H2 scrap, as per a SteelDaily report. The transaction was made at JPY 52,000/t FOB ($388), lower by JPY 1,000/t against last week's closing. It is expected that the material would arrive at the port in July 2022.
  
  

Meanwhile, South Korea's major mills POSCO and Hyundai Steel will cut domestic scrap purchase prices, as per Steel Daily. Hyundai Steel will trim prices from 20 June for its Pohang steelworks, while POSCO might reduce prices from 17 June for the Gwangyang and Pohang plants. The companies will slash purchase prices of all grades of scrap by KRW 10,000/t ($8/t).

• Vietnam mills cautious on limited steel demand: Heavy rainfall in many parts of the country kept steel mills cautious about booking any fresh slots. Indicative offers for Japanese bulk H2 are at $440/t CFR levels. However, a few major mills have booked two Baltic bulk cargoes recently. Around 30,000 t of mixed bulk cargo comprising HMS 1&2 (80:20) and shredded was booked at $420/t CFR HO Chi Minh City. Another cargo for 8,000 t of bonus material was booked at $435/t CFR Ho Chi Minh City.
  
  
• Bangladesh mills prefer EU bulk cargoes : Lower offers from the EU have continued to attract Bangladeshi buyers due to the price competitiveness against Japanese offers. In a recent booking heard, 40,000 t of shredded was booked from the EU at $420/t, CFR. However, indications for fresh H2 offers are at $460/t CFR Chittagong levels.
  
  

Japan's Tokyo Steel cuts scrap purchase prices to 4-month low: Tokyo Steel, Japan's largest EAF steelmaker, has cut scrap purchase prices to four months low this week. The company has trimmed bids by JPY 500/t ($4/t) for one of its steelworks, effective 16 June. Post-revision, the bid price for H2 scrap are at JPY 55,000/t ($408/t) delivered to the Utsunomiya plant, while bids for other factories remain unchanged.