- Japanese export price assessment dropped by $48 w-o-w
- Hyundai Steel lowers bids for Japanese scrap up to $57
- Tokyo Steel made five significant price cuts this week
Japanese scrap export offers have dropped further considerably for a third successive week. However, limited trades have been observed. Bulk offers for Japanese H2 are being quoted at JPY 35,000-37,000/t FoB basis. SteelMint’s price assessment for Japanese H2 scrap export stands at JPY 36,000/t FoB, registering a sharp fall by JPY 5,000/t ($48) w-o-w.
South Korean mills lower bids for Japanese scrap- South Korean mill– Hyundai Steel has further reduced its bid price for Japanese scrap by up to JPY 6,000/t w-o-w, SteelMint learned from its credible sources. The bid for H2 is now set at JPY 35,000/t ($334) FoB level, down by JPY 4,500/t ($43) w-o-w. Hyundai Steel has reported CY’20 crude steel production at 19 mn t, a fall of 10% y-o-y against 21.2 mn t. Production decreased as global demand shrank due to the pandemic. The company’s sales in CY’20 totalled 19.6 mn t, declining by 8% y-o-y due to a slump in industry demand.
A total of around 10,000 t of Japanese H2 has been booked by South Korean mills, including Dongkuk Steel at JPY 36,500/t ($352) FoB basis early this week.
Prices for Vietnam & Bangladesh continue to fall- Bulk Japanese H2 scrap offers for Vietnam and Bangladesh have dropped significantly by $50-60 in a weeks’ time. A Bangladesh-based major steel mill has booked Japanese bulk scrap cargo for Feb’21 shipment, credible sources have reported to SteelMint. Around 15,000 t of Japanese H2 has been booked at around $425-430/t CFR Chittagong basis. Prices have come down by $45 w-o-w. However, fresh offers for Japanese bulk H2 cargo have further declined and are being quoted at $415-420/t CFR levels.
“We are expecting H2 scrap prices in Vietnam to come down to $380-385/t CFR. However, we haven’t heard any fresh deals yet”, highlighted a Vietnam based source.
Tokyo Steel’s scrap purchase price falls to over one-month low– Japan’s leading EAF mill – Tokyo Steel has declared a significant fifth scrap purchase price cut this week for all of its factories. The company is now paying JPY 29,000/t ($277) for H2 price for Utsunomiya plant.
The prices for Utsunomiya have fallen by up to JPY 7,000/t ($67) so far this week and prices have hit over a month low. The company has lowered its purchase price due to the maintenance of its electric arc furnace (EAF)-Utsunomiya works in Kanto region.
Tokyo Steel scrap purchase price effective from 30th Jan’21
Prices in JPY/t
Source: Tokyo Steel report
Outlook– Japan’s scrap export prices may fall further in the near term. Following a global downtrend, domestic purchases are likely to be suspended as there is an oversupply in Kanto region.
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