Japanese scrap exports market remains stable on improved buying interest

The major scrap buying countries began enquiries for Japanese material. However, the exports market remained mostly stable ahead of the Kanto tender for December. Market participants are expecting that prices might move in an upward direction after the recent bids made by South Korea, another prominent scrap buying country.

SteelMint’s assessment for Japanese H2 scrap export prices stands at JPY 43,000-44,000/t ($321-328/t) FOB, unchanged w-o-w.

Japan’s ferrous scrap exports edge up by 5% in Oct

The country recorded ferrous scrap exports shipments at 634,775 in October 2022, an increase of 5% compared to 606,250 t in September, as per SteelMint data. An increase in exports to Taiwan, China, Malaysia, and India resulted in a rise in overall volumes.

Buyer’s market

• Hyundai Steel resumes bid for Japanese scrap: Hyundai Steel bid for Japanese scrap after a gap of two months. Bids for H2 were up by JPY 5,000/t ($37/t) and for HS grade, by JPY 6,000/t ($44/t) against the last bid on 6 October, 2022. Bids for H2 scrap were at JPY 43,000/t ($315/t), and for HS, at JPY 47,500/t ($348/t) FOB.

Furthermore, the domestic steel mills reduced their scrap buy prices by up to KRW 40,000/t ($30/t) this week. Currently, Hyundai Steel (Pohang works), POSCO Steel (Gwangyang & Pohang) and SeAH Besteel lowered their prices.

• Vietnam’s imported scrap prices up: Imported ferrous scrap prices in Vietnam moved upward, following the international market trend. Interestingly, business activity turned low due to the slow finished products requirement. Imported scrap offers were heard at $360-370/t CFR, up $5/t w-o-w.
• Bangladesh stops entering into new LCs: Bangladesh’s imported scrap market was mostly silent. Major mills are showing some interest in bulk US material owing to cost competitiveness, but due to LC issues, buyers are mostly quiet.

Tokyo Steel cuts scrap procurement prices by $4/t: Japan’s major EAF steelmaker, Tokyo Steel, continued reducing scrap purchase prices this week. The company reduced H2 grade bids by JPY 500/t ($4/t) for all its plants, effective 30 November, 2022. After the final revision, prices of H2 scrap stand at JPY 46,000/t ($332/t) delivered to the Tahara works and Okayama plant followed by JPY 46,500/t ($336/t) to the Utsunomiya plant.