Japanese H2 scrap export prices to Vietnam rose by USD 5-10/MT to Vietnam W-o-W, according to market participants.
Vietnamese mills mention that they received Japanese H2 grade scrap offers at around USD 335-337/MT CFR Vietnam, which was seen at USD 325-330/MT, last week.
Freight from Japan to Vietnam is at around USD 30/MT, this make Japanese FOB prices at around USD 305-307/MT or equivalent to Yen 34,000/MT FOB Japan.
“We have received revised offers from Japanese scrap exporters at around USD 335/MT CFR Vietnam. These prices are higher by about USD 5-10/MT compared to last week. Vietnamese mills have to import scrap before they go on for a long lunar holiday, starting in Feb 2018.”said a large scrap trader based in Ho Chi Minh City, Vietnam.
Strong demand for Scrap in Japan
Domestic scrap demand in Japan remains strong owing to Autumn season, which is considered to be peak season for construction. Notably Tokyo Steel, Japan’s largest Electric arc furnace has raised their scrap purchase prices by about USD 40/MT in last 45 days.
Market participants expect Japanese domestic scrap prices to remain firm in coming months.
To add on, Hyundai Steel had also resumed scrap imports from Japan at higher prices. Last trade from Hyundai steel for H2 grade from Japan was reported at Yen 33,500/t (USD 301/MT).
Japanese Scrap Exports in Jan-Sept
Japan exported 6.01 MnT ferrous scrap during the period of first nine months of CY17 (Jan-Sept’17). A drop of 9% Y-o-Y has noted in its exports against 6.59 MnT ferrous scrap exports in the same period in CY16.
South Korea continued to remain preferred destination for the Japanese ferrous scrap exports with 2.91 MnT imports occupying 48% share of total exports from Japan during Jan-Sept’17, followed by China (1.29 MnT) and Vietnam (1.13 MnT) and Taiwan (0.34 MnT) respectively.
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