Japanese scrap trades have remained limited this week after the market opened up after the Golden Week holidays. Not many suppliers were active in the market as they preferred to wait for the outcome of Kanto tender scheduled next week. Japan’s monthly Kanto Tetsugen scrap export tender is scheduled on 11th May’21, sources have confirmed to SteelMint. Around 20,000 t of Japanese H2 scrap is auctioned via Kanto export tender every month and serves as a benchmark for the Japanese scrap export market. Last month, the tender was awarded at an average price of JPY 43,380/t FAS.
SteelMint’s assessment for Japanese H2 scrap export now stands at JPY 45,500/t ($413) FoB, up by JPY 500/t w-o-w.
Bulk scrap offers for Bangladesh move up – Bangladesh buyers are not active in market due to ongoing Ramadan, upcoming Eid holidays and existing inventories. Bulk scrap offers for Japanese H2 have moved up by $10/t this week to $500/t CFR Chittagong levels.
Japanese scrap offers for China rise – Japanese scrap trades in China have increased, however no firm deals were concluded throughout the week. Previous deal of around 2,500-3,000 t happened at $515/t CFR basis last week and offers (for HRS grade) have risen to $530-535/t CFR China, up by $5-10/t w-o-w.
Bulk scrap offers for Vietnam rises – Imported scrap prices to Vietnam are on the higher side. Japanese scrap suppliers have kept their scrap export offers at higher levels. Few trades were reported for Japanese H2 at $480/t CFR basis and now fresh offers have risen to $485/t CFR Vietnam.
South Korean mills book bulk scrap cargoes of non-Japanese origin – South Korean mill – Hyundai Steel has booked 30,000 t of Australian scrap at $447/t in early April and it is expected to arrive by late June, as per SteelDaily report. Buyers continuing to opt for a wait-and-watch approach.
Another major giant – Dongkuk Steel has recently booked a Russian scrap cargo. The cargo comprises of 20,000 t of Russian A3 scrap and the deal was concluded at $445/t CFR level. Suppliers believe that Dongkuk Steel has booked Russian scrap at lower than market price.
No price revisions made by Tokyo Steel this week – Tokyo Steel has kept its scrap purchase price unchanged since last two weeks. Currently, they are paying JPY 40,000/t ($366) for H2 scrap delivered at Utsunomiya work and JPY 41,000/t ($376) for its Tahara plant in Central Japan.
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