Japanese scrap export prices fell marginally this week tracking a decline in bids from South Korea- and Vietnam-based mills. A discrepancy in bids and offers forced buyers to choose other prospective markets.
SteelMint’s assessment for Japanese H2 scrap exports stands at JPY 47,500/tonne (t) FoB, a drop of JPY 500/t ($5/t) week-on-week (w-o-w).
Hyundai Steel reduces bids for Japanese scrap: South Korean steel major Hyundai Steel, on 3 June’21 reportedly placed bids for Japanese ferrous scrap that were lower by JPY 3,000/t ($27) for all grades vis-a-vis the last bid placed on 20 May’21, as reported earlier by SteelMint. Bids for H2 are now at JPY 46,000/t ($419), FoB, down by JPY 1,000/t against last
week’s bids placed by Dongkuk Steel.
Earlier this week, another major steel mill, Daehan Steel, was heard to have booked around 10,000 t of Japanese H2 at JPY 46,000/t CFR levels. However, the deal remains unconfirmed till the time of publishing this report.
Meanwhile, Hyundai Steel has also lowered its bids for Russian scrap by $10/t, as per latest reports tracked by SteelMint. At present, bids for A3 Russian scrap are at $488/t CFR, down against the last finalised deal reported by SteelMint on 25 May’21.
Chinese buyers raise inquiries for US scrap: Even as bid-offer disparities have deterred Chinese mills from concluding deals for Japanese ferrous scrap, the U.S. offers have turned competitive lately. Offers from the US for Chinese mills for the PNS grade were heard at $470/t, CFR, SteelMint learned from sources.
Currently, Japanese HRS 101 grade offers stand at $550/t, CFR, and buyers are bidding at around $520/t, CFR, up by $10/t w-o-w.
Offers to Bangladesh, Vietnam fall further: Japanese H2 scrap offers to Vietnam fell slightly towards the week-end and are currently being quoted at $490-495/t CFR Vietnam levels, down by $5-10 w-o-w. Few transactions are heard to have been concluded at these levels No firm offers have been heard for Bangladesh as buyers are less interested in high prices.
Tokyo Steel’s scrap purchase prices unchanged: Japan’s leading EAF mill, Tokyo Steel, kept its scrap purchase prices unchanged for yet another week. The company continues to pay JPY 51,500/t ($473/t) for the Tahara plant and JPY 48,000/t ($440/t) for its Utsunomiya works.
However, the market awaits the results of the monthly Kanto Tetsugen tender for price clarity which is scheduled on 9 June’21.
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