Japanese scrap export offers moved up in a recent deal concluded by a leading South Korean steel mill, Hyundai Steel. The steel major raised bids for the H1 and H2 grade ferrous scrap by JPY 1,000/tonne (t) ($9/) against the last assessment on 9 Jun’21, as per SteelMint reports.
Bids for H2, the most preferred Japanese scrap, are at around JPY 48,000/t, CFR. However, the company kept bids unchanged for the higher grade after a hike last week. Higher demand from the Korean mills resulted in a rise in bids.
SteelMint’s assessment for Japanese H2 scrap exports stands at JPY 49,500/tonne (t) FoB, up by JPY 1,000/t w-o-w.
Price gap widens across grades: The company is heard to have concluded a deal for the higher grade scrap Shindachi-bara this week at around JPY 60,000-61,000/t FoB basis. After conclusion of this deal, the price gap between H2 and Shindachi-bara has increased to JPY 12,000/t while the average price gap is at JPY 4,000/t levels. Market players expect the gap to widen further as demand for Shindachi-bara increases amidst supply shortage which may keep scrap prices on the higher side. Rise in automobile production led to active bookings for Shindachi-bara, as per reports.
Meanwhile, the company also booked around 57,000 t of Russian A3 bulk scrap cargo earlier this week. The deal was concluded at $518/t CFR, up by around $15-20/t against the last deal concluded on 25 May’21.
Another major steel producer, Dongkuk Steel, booked 9,000 t of Japanese H2 at JPY 49,000/t FoB basis. The contract prices are slightly up by JPY 1,000/t against the bid made by Hyundai Steel.
Bids from China flat: Bids from Chinese steel mills for Japanese HRS 101 grade ferrous scrap remained unchanged at $540/t, CFR China against the last SteelMint assessment on 18 Jun’21, as per sources. Offers were tracked at around $570/t, CFR China, last week. However, no recent deals have been heard at these prices, as per SteelMint reports.
Offers for Vietnam fall $10/t: Imported scrap offers into Vietnam for Japanese H2 are being quoted at around $495-500/t CFR, down by $10/t against price reported on 21st Jun’21. However, no fresh deal has been heard at this level.
No firm offers have been reported for Bangladesh. Buyers were seen actively booking US bulk cargoes.
Tokyo Steel raises scrap buying price by $9/t: Japan’s leading electric-arc furnace (EAF) steel mill, Tokyo Steel, raised its scrap purchase prices on 23 Jun’21 after a month’s hiatus. Strong domestic ferrous scrap demand in Japan resulted in the hike in bids.
- The company increased prices by JPY 1,000/t ($9) for its three steelworks, Okayama, Utsunomiya and Takamatsu.
- After today’s revision, the company would pay a bid price for H2 scrap at JPY 49,000/t ($442/t) for the Utsunomiya works.
Prices in JPY
Source: Tokyo Steel
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