Japan: Scrap export offers decline further on lower bids

Japanese scrap export offers have declined further owing to limited inquiries on discrepancies in bids and offers. Meanwhile, Japanese suppliers were actively engaged trading inthe domestic market.

SteelMint's price assessment for Japanese H2 scrap exports stands at JPY 46,000/tonne (t) FoB, down by JPY 1,000-1,500/t compared to last week. Prices moved down on the back of lower bids and falling global prices.

Hyundai Steel lowers bids for Japanese scrap: South Korean steel major, Hyundai Steel, reduced bids for Japanese ferrous scrap by JPY 1,500/t ($14/t) against the last bid placed on 29 Jul'21, sources confirmed.

• Bids for the most-preferred H2 scrap are now at JPY 45,500/t ($415/t) FoB.
  
  
• Bids for premium Japanese Shindachi bara scrap remained unchanged at JPY 64,000/t FoB ($584/t).
  
  
• The company has booked a Russian bulk scrap cargo, as per latest reports. The cargo comprises around 70,000-80,000 t of Russian A3 scrap. The deal was finalised at $495/t CFR. Prices decreased by $15-20/t against the last deal concluded on 7 Jul'21 for Sept'21 shipments. Another major steel mill has booked around 20,000 t of Russian A3 scrap at a similar price of $495/t CFR.
  
  

Trade from Bangladesh, Vietnam absent: The prominent importers of Japan scrap, Vietnam and Bangladesh, remained absent in the market for yet another week. This is around the fifth consecutive week when no deal has been recorded for Vietnam and Bangladesh.

• Offers for imported Japanese H2 scrap are being quoted at $475/t CFR Vietnam, down by $15/t w-o-w.
  
  
• The Bangladesh market remained largely silent due to extension of the lockdown. Bulk H2 price indications were heard at $550/t CFR Chittagong.
  
  

China's ferrous scrap import market quiet: China's ferrous scrap import market remained soft as deals dried up from Japan, as per latest updates. No import bookings were finalised amidst dull demand on rising Covid-19 cases in China. On the other hand, bids for imported billets are at $695/t CFR, as per SteelMint's reports.

Japan's scrap export shipments drop 14% in H1CY'21: Japan, one of the world's leading ferrous scrap exporters, registered a significant drop in volumes in H1CY'21. Export shipments dropped to 4.07 million tonnes (mn t) in H1CY'21 against 4.76 mn t seen in H1CY'20, as per customs data maintained with SteelMint. All traditional export destinations like Vietnam, South Korea and Bangladesh witnessed a decline in imports from Japan except China.

Tokyo Steel reduces scrap buying price twice this week: Japan's leading EAF steel mill, Tokyo Steel, has reduced scrap purchase prices twice this week.

• The company has decreased prices by JPY 500/t ($5) for all its five steelworks today. Prior to this, the company had announced a price cut of JPY 500/t ($5) for its Tahara steelworks on 02 Aug'21.
  
  
• After today's revision, the company would pay a bid price for H2 scrap at JPY 49,000/t ($446) for Tahara and JPY 48,500/t ($442) for the Utsunomiya works.
  
  
• Decline in bids by Hyundai Steel for Japanese scrap and fall in global prices have resulted in decline in bids by Tokyo Steel.
  
  

Market insiders are waiting for Japan's bellwether monthly Kanto Tetsugen scrap export tender which has been re-scheduled for 19 Aug'21 against the usual 9-12th of every month. The tender was delayed due to the ongoing Olympics in Tokyo, trader sources informed SteelMint.