Japanese scrap export offers have come down due to lower bids from South Korea- and Vietnam-based mills. Limited deals were heard recently, owing to decline in global scrap prices. Japanese scrap prices still remained unworkable for prominent buyers like Bangladesh due to lockdown restrictions on increasing Covid cases which kept market activities slow.
SteelMint’s price assessment for Japanese H2 scrap exports stands at JPY 47,000-47,500/tonne (t) FoB, down by JPY 500/t compared to last week.
Hyundai Steel reduces bids for Japanese scrap: South Korean steel major, Hyundai Steel, reportedly lowered bids for Japanese ferrous scrap yesterday by up to JPY 1,000/t ($9/t) against the last bid placed on 9 Jul’21, SteelMint learnt from sources. The company has lowered its bid for H2 due to less demand on planned maintenance by plant.
- Bids for the most-preferred H2 scrap are now at JPY 47,000/t ($428/t) FoB. The bids presented are down by JPY 500/t ($4/t) against last week’s bids placed by Daehan Steel.
- Bids for premium Japanese Shindachi bara scrap have settled at JPY 64,000/t FoB. Interestingly, the difference between high grade scrap and H2 has widened further now.
- The company has also bid for Russian A3 scrap at $490/t CFR levels. However, the deal remained unconfirmed till the time of publishing this report.
Another South Korean major steel mill, -Daehan Steel, booked Japanese H2 at JPY 47,500/t ($434/t) FoB basis last week.
Bangladesh,Vietnam scrap buyers quiet: Bangladesh and Vietnam, two of Japan’s most active scrap buyers, continued their silence due to discrepancies in bids and offers. Meanwhile, Japanese suppliers were making profit in their domestic market only due to high scrap demand, sources informed SteelMint.
- Japanese H2 scrap is being offered at $490/t CFR Vietnam levels, but limited inquiries have been received. Bids were heard at around $480/t CFR Vietnam levels.
- On the other hand, indicative offers for H2 have been heard at around $590-595/t CFR Chittagong levels. However, buyers are away from the market, due to lockdown and high offers.
Chinese scrap buyers remain on the sidelines: Chinese steel mills seem less interested in Japanese scrap at present, as they are actively procuring semi-finished products (billets), instead of scrap, SteelMint understands. Fresh offers for billets are being cited at $720-725/t CFR levels.
China’s ferrous scrap consumption was recorded at 64.1 mn t in Q1CY’21 compared with 41.5 mn t in Q1CY’20, according to the latest figures released by the Bureau of International Recycling (BIR).
Tokyo Steel scrap buying prices unchanged: Japan’s leading EAF steel mill, Tokyo Steel, has kept its scrap purchase prices unchanged this week. The company had reduced its scrap purchase prices by up to $9/t on 19 Jul’21, effective from 20 Jul. The company, for H2, is paying JPY 50,000/t ($455/t) for the Tahara works.
Outlook
Japanese scrap prices would likely come down further on limited buying interest. Additionally, Tokyo Steel would like to adjust its scrap purchase prices in the near term, SteelMint understands.
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