Japanese scrap suppliers have increased their export offers for Nov’21 shipments. Market players were active in the domestic market on improved demand which pushed up export prices. However, major Japanese scrap importing countries like Vietnam, Taiwan, and South Korea remained active in booking fresh slots while Bangladesh buyers remained less interested in Japanese bulk cargo, SteelMint understands.
In addition, the market is also waiting for the Japan’s monthly Kanto Tetsugen scrap export tender to be concluded which has been scheduled for 12 Oct’21, to get clarity on the country’s scrap price trends, sources informed SteelMint.
SteelMint’s assessment for Japanese scrap export offers stands at JPY 52,000/t FOB, up significantly by JPY 3,000/t w-o-w. Fresh offers for Japanese scrap are heard at around JPY 54,000/t FOB basis.
Overview of Japanese scrap buying countries
- Vietnam maintains its scrap buying momentum: South East Asia’s emerging scrap buyer, Vietnam, maintained its momentum in booking scrap from Japan after easing of lockdown restrictions and demand pick-up. Increased domestic and overseas demand from China kept Vietnamese buyers active in booking fresh slots for Nov’21 shipments.
Indicative offers for bulk Japanese H2 are at $530/t CFR Vietnam levels.
- South Korean mill books Japanese scrap: South Korean major Daehan Steel booked two bulk Japanese scrap cargoes. The cargo consists of H1 & H2 (50:50) at JPY 56,900/t CFR levels, equivalent to JPY 52,000/t FOB, against around JPY 47,000/t FOB towards Sept’21-end, registering a sharp hike of JPY 5,000/t.
With these bookings, other major mills like Hyundai Steel and POSCO are likely to resume booking for Japanese cargo.
- Japanese scrap import offers to China rise: China’s ferrous scrap import market remained quiet as deals were reduced from Japan, as per latest updates received by SteelMint. Offers for Japanese heavy recycled steel (HRS101) scrap is now at $600-605/t on CFR basis, up $25-30/t compared to last week.
However, bids placed by Chinese buyers are quite lower than offered prices. This disparity resulted in lack of deals.
- Tokyo Steel revises scrap purchase prices twice this week: Japan’s domestic scrap purchase prices were revised two times in this week by up to JPY 4,000/t ($35/t). In the second revision, only Utsunomiya plant revised its purchase price by JPY 2,000. Post-the second price adjustment, the company would pay a bid price for H2 scrap at JPY 53,000/t ($474) delivered to the Utsunomiya plant.
Source: Tokyo Steel
Prices in JPY
Outlook
Japanese scrap export prices continue to move up because suppliers are likely to keep their offers high ahead of the Kanto tender’s outcome.
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