Japanese scrap export offers have increased, owing to hike in bids primarily from South Korea, in addition to stronger domestic demand in Japan. However, bulk Japanese scrap trading activities in other traditional markets like Vietnam and Bangladesh have remained on the lower side.
South Korean mills raise bids for Japanese scrap: South Korea’s steel giant, Hyundai Steel, raised bid prices for higher grades of Japanese scrap by JPY 4,000/t ($36) earlier this week. The bids for higher grade shredded scrap and shindachibara are now set at JPY 55,000/t and JPY 57,000/t FoB levels respectively. The company did not bid for H2 grade scrap and no fresh deal was heard to have been concluded at present prices. 
Meanwhile, another major steelmaker, POSCO Steel, has also bid for Japanese scrap and set the shredded scrap bid price at JPY 59,000/t CFR.
“Japanese suppliers were trying to sell higher grades of scrap to their nearest countries like Taiwan, China and South Korea.However, the discrepancy in bids and offers kept scrap buyers on the sidelines. The existing potential markets like Bangladesh and Vietnam opt to wait and watch for further clear price directions,” said a Japanese scrap trader.
SteelMint’s assessment for Japanese H2 scrap exports stands at JPY 48,500/tonne (t) FoB, unchanged w-o-w.
On the other hand, Dongkuk Steel booked US-origin bulk HMS 1 cargo of around 30,000 t recently. The deal was concluded at $510/t CFR levels.
Japan ferrous scrap export offers to China move up $10/t: Japanese ferrous scrap offers for HRS 101 grade have moved up further by around $10/t and are currently heard at $570/t, CFR China, SteelMint learnt from sources. Offers were last tracked at around $560/t, CFR China, last week, although bids remain unchanged at $540/t, CFR. However, no recent deals have been heard concluded at higher prices.
Japanese suppliers are busy with the domestic market, owing to high demand. Price indications for bulk Japanese H2 to Vietnam are around $495/t CFR Vietnam levels. Bulk scrap trade from Japan to Bangladesh have dried up amid sharp volatility in freight rates.
Tokyo Steel keeps scrap purchase prices untouched: Japan’s leading EAF mill, Tokyo Steel, kept its scrap purchase prices unchanged for the third sequential week. The company is paying around JPY 51,500/t ($473/t) for the Tahara plant and JPY 48,000/t ($440/t) for its Utsunomiya works.
Outlook
Japanese scrap export offers are likely to remain on the higher side, influenced by increased domestic demand. Mills may adjust their domestic scrap purchase prices in the coming days.
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