Japanese scrap prices continue to head south

Japan's export prices for H2 grade scrap continued to fall for yet another week, while the inconclusive Kanto tender dragged prices down further.

Meanwhile, limited buying interest was seen from South Korea, Vietnam, and Taiwan for Japanese scrap. Bangladesh-based buyers remained less interested and were waiting for price to reduce.

SteelMint's assessment for Japanese scrap export prices stands at JPY 51,500/t FOB basis, decreasing by JPY 1,000/t w-o-w.

• Vietnam imported scrap offers fall: Vietnam's imported scrap market has witnessed a drop in offers on bullish sentiments. SteelMint's assessment for Japanese bulk H2 moved up to around $515/tonne (t) CFR Vietnam. These were down by around $15 earlier this week. However, no deals have been concluded at the cited offers, sources told SteelMint.
  
  

Furthermore, following the drop in imported scrap offers and limited inquiries received from Chinese billet buyers, Vietnam's domestic scrap prices have also sunk. The procurement prices have come down by VND 300/kg ($13/t) for H1 grade to VND 11,600/kg ($504/t) while H2 scrap is being offered at VND 11,300/kg ($491/t).

• South Korean mill lowered bids for Japanese scrap: South Korean mill SaAH Steel booked two Japanese cargos today of shredded at JPY 61,000/t CFR basis. The H2 bid price was at JPY 50,500/t FoB, down by JPY 1,000/t FOB against Hyundai Steel's last week's bid. Meanwhile, Hyundai Steel has lowered bids for Russian A3 scrap at $515/t CFR, down by $34/t compared to a deal concluded towards end-Oct'21 by Dongkuk Steel.
  
  

Temporarily, due to accumulating inventory and planned maintenance at Incheon plant till 6 Dec'21, Hyundai Steel has cut prices for its domestic scrap procurement price. The company has reduced the scrap purchase price for its major plants by KRW 15,000/t ($13/t), effective 16 Nov'21. The buy price for the Dangjin steelworks has been reduced by KRW 20,000/t ($17/t) to KRW 610,000/t ($516/t), as per Korea's SteelDaily reports.

• Tokyo Steel lowers scrap purchase prices twice this week: Japan's domestic scrap purchase prices were revised two times in this week by up to JPY 1,000/t ($9/t). Post-the second price adjustment, the company would pay a bid price for H2 scrap of JPY 56,000/t ($490) for Tahara steelworks and JPY 55,000/t ($481/t) delivered to the Utsunomiya plant.
  
  

Source: Tokyo Steel
Prices in JPY

Outlook
The continued fall in Japanese scrap export prices may keep suppliers under pressure to reduce their offers, SteelMint understands.