Japan: Scrap export offers continue to move north on higher bids

Japanese scrap export offers increased further as bids from the overseas markets rose for yet another successive week amid hike in bids from South Korea- and Taiwan-based mills.

However, prominent Japanese buyers such as Bangladesh preferred other prospective sources like the USA and European Union, owing to price disparities.

SteelMint's assessment of Japanese scrap export offers stands at JPY 53,000/tonne (t) FOB ($458/t) levels, up by JPY 1,000/t w-o-w.

• South Korean mills hike bids for Japanese scrap: Hyundai Steel raised its bids for Japanese scrap recently, by JPY 1,000/t ($9/t) for H2 grade and JPY 1,500/t ($13/t) for Shindachi bara scrap compared to the last bid on 20 Jan'22. Bids for H2 scrap are now at JPY 52,000/t ($453/t). Bids for HS scrap remain unchanged at JPY 60,000/t ($523/t) FOB.
  
  

POSCO has increased bids for Japanese ferrous scrap by JPY 500/t ($4/t) compared to the last bids placed on 21 Jan'22, as per a SteelDaily report. Bids for shredded scrap are now at JPY 62,000/t CFR ($538/t) and for HS material at JPY 64,000/t CFR ($555/t).

• South Korean mills also book US scrap cargoes: Hyundai Steel and Dongkuk Steel have signed a contract to import scrap from USA, in close succession, last weekend. The two companies have booked HMS 1&2 (80:20) at 45,000 t and 25,000 t, at $524/t CFR and $525/t CFR basis, respectively.
  
  

South Korea's steel production and exports will remain stalled on account of the approaching Korean New Year holidays. Moreover, some of the major mills, including Hyundai Steel and Dongkuk Steel, have plans to go on maintenance, suspend production and overseas supplies during the Korean New Year celebrations.

As a result, Hyundai Steel has postponed its purchase bids for domestic scrap for the Incheon and Dangjin steelworks in expectation of a rise in scrap prices due to tight availability.

• Offers for Vietnam rise further, trade slows ahead of holidays: Offers for bulk Japanese H2 are at $510-515/t CFR Vietnam, up by $5/t w-o-w. However, trade cooled off and, overall, the market has slowed down amid limited inquiries, owing to the upcoming Tet holidays, SteelMint understands.
  
  
• Bangladesh mills opt for bulk cargoes from USA, EU: Bangladesh's imported scrap trade in bulk has resumed after a gap of a couple of weeks. Buyers were away from the market earlier in the month, owing to subdued domestic steel market sentiments, and were awaiting fresh offers from scrap yards. Four bulk cargoes were booked from USA and EU this week.
  
  

On the other hand, Japanese domestic scrap purchase prices have remained unchanged. Tokyo Steel's scrap purchase prices remained unchanged since the last revision seen on 13 Jan'22. The company is paying for H2 scrap at JPY 53,000/t delivered to Utsunomiya, while prices for the other plants remain unchanged.