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Japanese H2 scrap export offers remain unchanged w-o-w amid subdued buying interest

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Melting Scrap

BigMint Bureau

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22 Nov 2024, 14:56 IST

Japanese H2 scrap export offers remain unchanged w-o-w amid subdued buying interest

Weak demand, high freights make buyers wary

Feng Hsin Steel cuts rebar, scrap buying prices

This week, Japanese H2 scrap export offers held steady, as buyers maintained a cautious stance amid subdued demand and elevated freight costs.

BigMint's latest assessment placed Japanese H2 scrap export offers at JPY 45,000/t ($291/t) FOB Tokyo Bay, unchanged w-o-w.

Meanwhile, domestic FAS collection prices for H2 grade inched up w-o-w to JPY 41,000-42,500/t ($265-275/t). Market participants feel that the slight hike is temporary and driven by certain shippers securing material for incoming vessels.

The average price of H2 scrap iron in Japan's three regions remained stable at JPY 38,100/t ($246/t) during the third week of November, according to the Japan Iron and Steel Association. Regional prices held steady for the second consecutive week, with Kanto at JPY 41,500/t ($268/t), Kansai at JPY 36,600/t ($236/t), and Chubu at JPY 36,200/t ($234/t).

Other market updates

Vietnam: Vietnam's imported scrap market was sluggish due to weak demand and high freight costs. Japanese H2 offers were heard at $335-350/t CFR, but bids were around $330/t, with limited trade activity.

In the domestic market, scrap offers remained steady for the sixth consecutive week, with northern prices at VND 9,000-9,400/t ($354-370/t) and southern ones at VND 8,500/t ($335/t). Domestic demand was low, with mills operating at reduced capacity due to slow government project approvals. Competitive imported scrap put additional pressure on local prices, with imported material meeting around 70-80% of the country's scrap needs.

Taiwan: Taiwan's largest rebar manufacturer, Feng Hsin Steel, reduced its rebar and scrap buying prices for 18-22 November. Post-revision, rebar was priced at TWD 18,400/t ($567/t) exw, down TWD 200/t w-o-w, while local HMS (80:20) was at TWD 9,000/t, lower by TWD 300/t w-o-w. The cuts followed weaker global scrap prices, with US HMS (80:20) at $315/t CFR (down $3/t w-o-w) and Japan's H2 stable at $325/t CFR since late October.

South Korea: South Korea's imported scrap market remained quiet in the week, with prices stable amid muted demand and weak construction activity. Light A grade scrap hovered at KRW 360,000/t ($257/t), while Heavy A stayed range-bound at around KRW 385,000/t ($275/t). Domestic sentiment was bearish due to a struggling real estate market and declining steel product prices, leading to reduced production rates.

Meanwhile, Japanese H2 demand in South Korea was steady, with mills maintaining bid levels for HS at JPY 50,000/t ($322/t) and Shindachi Bara at JPY 49,000/t ($316/t) CFR Korea.