- Hyundai Steel lowers bid for Japanese scrap, books Russian cargo
- Firm Japanese scrap offers remain absent in Bangladesh & Vietnam
- Tokyo Steel’s scrap purchase price for Kanto work drops to a one-month low
Japan’s ferrous scrap export prices dropped further to a one-month low on slow domestic and overseas demand. Disparity in bids and offers kept Japanese scrap buyers away from fresh bookings. Japanese scrap prices have softened in both domestic and exports. Meanwhile, volatility in freight rates continues to remain a concern.
SteelMint’s assessment for Japanese H2 scrap export now stands at JPY 40,750/t ($372) FoB, down by JPY 250/t ($2) w-o-w.
Hyundai Steel- South Korea’s major steel mill has lowered its bids for Japanese scrap for the third successive week by JPY 2,000/t ($18) for all grades, against its last bid presented on 11th Mar’21.
On the other hand, the company has booked Russian bulk scrap cargo recently, as per SteelDaily report. The cargo comprises around 35,000 t of Russian A3 scrap and the deal concluded at $425/t CFR basis for May’21 delivery. This may keep Japanese scrap prices under pressure.
Bangladesh and Vietnamese buyers opt to wait: Despite Japanese scrap export offers remaining on the lower side, Vietnam and Bangladesh-based buyers opted to wait further for a clear price direction. Due to increased freight rates, buyers were looking for other prospective scrap sources. Limited offers for Japanese H2 are being quoted at $430/t CFR levels to Vietnam.
Tokyo Steel’s scrap purchase price for Kanto work drops to a one-month low: Tokyo Steel has lowered its scrap purchase price twice this week. Prices have dropped over a one-month low at Utsunomiya work in Kanto region. The company is now paying JPY 40,000/t ($367) for H2 scrap delivered at Utsunomiya work and JPY 41,000/t ($375) to Tahara plant in Central Japan.
Tokyo Steel’s scrap purchase prices
Price in JPY/t
Source: Tokyo Steel report
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