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Japanese scrap export prices move up as mills raise bids

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Melting Scrap

BigMint Bureau

878 Reads

26 Feb 2021, 16:24 IST

Japanese scrap export prices move up as mills raise bids

South Korean mill hikes bid by JPY 2,000 ($19) for Japanese scrap
Tokyo Steel raised prices thrice this week

Japanese scrap export prices surged further and hit a one-month high. Hike in global scrap prices and demand-supply mismatch in Japanese scrap market has pushed scrap offers up. H2 scrap offers are now being cited at around JPY 42,000-44,000/t FoB levels. Offers have moved up significantly post CNY holidays last week. Chinese buyers are expected to influence the scrap market trend.

SteelMint's assessment for Japanese H2 scrap export stands at JPY 43,000/t ($405) FoB, up by JPY 2,700/t ($25) w-o-w.

South Korean mill raises bid for Japanese scrap: South Korea-based Daehan Steel mill has raised its bids for Japanese scrap purchase by JPY 2,000/t ($19) as compared to last week's bid made by Hyundai Steel, SteelMint learned from its credible sources. The bid for H2 is now set at JPY 42,500/t ($400) FoB level, however, deals were not reported at the present bid price.

Bulk scrap offers in Vietnam rally further: Vietnam's imported bulk Japanese scrap offers have risen by $20-25/t compared to the offers assessed towards the beginning of this week. Currently, the H2 offers are at $460-465/t CFR Vietnam. However, trades have slightly slowed down due to the sharp hike in offers.

Buyers turn cautious in Bangladesh: Imported bulk Japanese scrap offers to Bangladesh have increased by $30-35/t w-o-w. Currently, the H2 offers are at around $470-475/t CFR Chittagong. Trade sources highlighted that no recent bookings have been concluded yet due to the surge in offers.

Japan's Tokyo Steel raised scrap purchase prices thrice this week: Japan's leading EAF mill - Tokyo Steel has announced its scrap purchase price hike thrice this week for all five plants by up to JPY 1,000/t ($9), effective from tomorrow (27th Feb'21). Notably, this the seventh price hike so far in Feb'21.

After today's price adjustment, the company would pay JPY 41,000/t ($386) for both H2 scrap delivered at Tahara and Utsunomiya works. Prices at its Tahara works in Central Japan have climbed to a one-month high.

Tokyo Steel's scrap purchase prices

Prices in JPY
Source: Tokyo Steel report

Outlook: It is expected that Japan's domestic scrap prices would continue to rise. Suppliers are waiting for Chinese buyers to start aggressive buying.