The scrap export market in Japan has experienced a mixed trend this week. With respect to Kanto’s export tender last week at high prices, South Korean mills bade for the Japanese material.
On the other hand, prices from other mills lowered their bids for Japanese scrap as commercial activities still need to be improved. Suppliers are likely to witness selling pressure and may reduce export prices of scrap to other countries to enhance trade. However, buyers are not willing to accept these offers as the finished steel market is still unsupportive.
Ferrous scrap Japanese H2 price is at JPY 54,500/t ($412/t), down JPY 1000/t w-o-w.
Further, the decline in export offers by Japan’s major EAF steelmaker, Tokyo Steel, has also lowered ferrous scrap procurement prices by JPY 500/t ($4/t) for all plants, effective 17 March, 2023. After the revision, prices for H2 scrap stood at JPY 55,000/t ($414/t), delivered to the Tahara, Utsunomiya, and Okayama plants.
Buyers silent
- Vietnam: Vietnam traders received the same grade offers at $475/t CFR Vietnam, while the bid-offer disparity widened and the acceptable buying price at $435-440/t CFR Vietnam. The country’s finished steel demand remained low, and market participants expect production may be lower in the near term, considering the market scenario.
- South Korea: The South Korean market is also muted, with lack of inquiries for both the US and Japanese bulk cargoes. Japanese offers were too high because of the strong Yen this week. Scrap prices were mostly stable, but the domestic construction market in the country is not good, leading to lower downstream prices.
Warehouse inventories increased with steel mills. Hence, trade activities are likely to remain slow. Hyundai Steel’s production at the Incheon plant is also on decline due to the uncertain construction industry, which is contributing to decrease in demand for raw materials.
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