Japanese scrap suppliers focus on home market amid better realisations

Japanese scrap prices witnessed an uptrend on supportive finished steel demand in local market, which also restricted overseas buyers from procuring material due to prices strengthening.

While the construction and real estate industries continue to experience credit issues, Vietnam's steel demand is still sluggish. Also, South Korean mills have adequate inventory, so buyers anticipate further price reduction.

SteelMint's assessment for Japanese H2 scrap export prices stands at JPY 52,500-53,000/t ($390-393/t) FOB, down JPY 300/t ($2/t) w-o-w.

Market overview

• No enquiries from Korean mills: South Korea's demand for imported material is dull as mills have stocked inventory from the domestic market at lower prices. Also, previously contracted imported scrap shipments are arriving in South Korea.
  
  

Hyundai ignored this week's bids, and it is anticipated that the company would buy scrap from short-sea suppliers next week for shipment in March and April.

• Vietnamese mills sourcing domestic material: Major mills are sourcing local scrap for steel production as the import scrap market in Vietnam is not very active. Sales of finished steel have, however, decreased since last week. There is discrepancy between offers and bids, and purchasers are waiting to see how the earthquake in Turkiye may affect prices in the near term.
  
  

Offers from Japanese H2 scrap suppliers are slightly higher at $450/t. Offers for US-origin HMS 1&2 (80:20) were heard at $460/t CFR Vietnam.

Tokyo Steel scrap purchase prices stable: Japan's major EAF steelmaker, Tokyo Steel, kept domestic scrap buy prices unchanged. Currently, prices of H2 scrap stand at JPY 53,500/t ($408/t) delivered to the Tahara, Utsunomiya, and Okayama plants.