Japanese scrap export offers remain stable w-o-w due to modest buying enquiries from participants. Despite the increased enquiries from market participants, limited deals were concluded for Japanese material. Demand for high-grade scrap has increased significantly as prices continued to move up.
SteelMint’s assessment for Japanese H2 scrap export prices stands at JPY 50,000-51,000/t ($377-384/t) FOB, moving up by JPY 2,000/t ($15/t)w-o-w. Prices have just risen to over a three-month high.
Additionally, suppliers taking advantage of unstable currency exchange rates. Currently, the Japanese Yen is trading at 132.5 in the currency exchange market.
Bid prices rise to continue: South Korean steel major, Hyundai Steel, increased import prices by JPY 1,000/t($8/t) w-o-w, actively increasing bid prices for two consecutive weeks. The company bids for Japanese H2 scrap stand at JPY 50,000/t($379/t), while for HS it is JPY 54,000/t ($409/t)FOB, on 20 Dec’22. Hyundai Steel continues to bid for Japanese scrap due to improved domestic demand, while few deals heard to have been booked by Hyundai and Daehan Steel at increased prices.SeAh Besteel was heard to have bought higher grade material- shindachi at JPY 53,500/t FOB Japan basis in the week of Dec 22.
Vietnamese mill books container: A small trade for US-origin HMS (80:20) in container heard to have been booked at a price of $370/t on a CFR Vietnam basis, while bulk deals were largely absent throughout the week.
Indicatives offers for bulk H2 was around $390-395/t CFR levels.
Bangladesh silence extends: The imported scrap market remained less active due to the liquidity crunch and LC opening restrictions. Japanese H2 is currently trading at $420-425/t.
Tokyo Steel bid prices are stable w-o-w: It is also heard that Tokyo Steel, a leading scrap buyer in Japan, is considering a hike in its purchase price to compete with other steelmakers. With this, the domestic market, which had been falling in November, rebounded in mid-December.
Current bid prices for Tokyo Steel for its Tahara & Utsunomiya plant stayed at JPY 49,000/t ($356/t), the company increased its prices on 14 Dec’22 last time, and since then no revision reported.
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