- Vietnam mills booked bulk cargoes at increased offers
- Hyundai Steel raised bids sharply by upto JPY 4,000/t against end-Feb
- Tokyo Steel raised scrap purchase price twice this week
South Korean mill – Hyundai Steel has increased its bid price for Japanese scrap by up to JPY 4,000/t, sources have confirmed to SteelMint. The bid for H2 is now set at JPY 43,500/t ($406) FoB level, up by JPY 3,000/t ($28) against the last bid which was on 18th Feb’21. Whereas, the bid price for H2 has increased by JPY 1,000/t ($9) against Daehan Steel’s bid placed last week. However, bids for high-grade scrap have increased by JPY 4,000/t.
The company has shown its interest to book higher grades. Around 60,000 t of Japanese bulk cargo heard to have booked by the company, comprising of shindachi and HS grade.
Another South Korean mill Daehan Steel has placed its bid for Japanese H2 at JPY 43,000/t FoB levels. However, Japanese suppliers have shown less interest in reducing their offers, as they are already trading at high levels with buyers based in Southeast Asia.
SteelMint’s assessment for Japanese H2 scrap export stands at JPY 45,000/t ($417) FoB, up by JPY 2,000/t ($19) w-o-w.
Vietnamese buyers remain active in the Japanese market: Vietnam-based steel mills have booked Japanese bulk scrap cargoes at increased offers. The cargo booked comprises 3,000 t of Japanese H2 at around $470/t CFR Vietnam. Prices for Japanese H2 have moved up by $15 as against the beginning of this week. Hike in freight rates and tighter material availability has pushed offers up further. Despite high offers, Vietnamese scrap buyers remain active in the market due to China’s increased inquiries for other semi-finished products.
Buyers turn cautious in Bangladesh on higher bulk offers: Bulk Japanese scrap offers for Bangladesh have increased by $30-35/t w-o-w. Currently, the H2 offers are at around $475-485/t CFR Chittagong. One Japanese bulk cargo is heard to have been booked by a Bangladesh steelmaker at around $475/t CFR levels. Market insiders believe that there is room for more bookings and mills need to replenish their empty stocks.
Japan’s Tokyo Steel raises scrap purchase price twice this week: Japan’s leading EAF mill – Tokyo Steel has hiked its scrap purchase price twice for all five plants by up to JPY 1,500/t ($14). The company is now paying JPY 42,500/t ($396) for both H2 scrap delivered at Tahara works in Central Japan and Utsunomiya plant in Kanto region. Japanese domestic scrap prices are rising on the back of price rally in export offers.
Tokyo Steel’s scrap purchase prices
Prices in JPY
Source: Tokyo Steel report
Outlook: Market awaits Japan’s monthly Kanto Tetsugen scrap export tender which is scheduled on 10th March’21, to get a clearer outlook on price.
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