Japanese ferrous scrap export prices fell over the week with slower scrap loading to vessels, also influenced by falling overseas scrap prices, traders said.
S&P Global Platts assessed the H2 scrap export price at Yen 25,000-26,000/mt ($220-229/mt) FOB Tokyo Bay Wednesday, The implied midpoint of Yen 25,500/mt was down Yen 1,750/mt from the previous week's midpoint.
South Korea's leading mini-mill, Hyundai Steel, Wednesday placed its bid at Yen 25,000/mt FOB for H2 material and Yen 29,000/mt FOB for Shindachi grade for March shipment, down Yen 2,000/mt from its previous bid on January 18.
A Tokyo-based scrap trader said that the bid price was far below traders' target of Yen 27,500/mt FOB. "We believe Hyundai's booking this time will be very limited," he said.
Sources said other South Korean mills were planning to purchase Japanese scrap, but no actual movement was confirmed during the week.
Vietnamese customers were targeting around $270/mt CFR for Japanese H2 material (for 5,000 mt) a week ago, but no booking was confirmed. "Inquiries from Vietnamese have become very quiet, they are probably ready for their holidays (January 26-February 1)," another Tokyo-based trader said.
He said that buying by overseas customers was expected to slow down this week and next because of holidays in other Asian countries. "There are no factors to boost Japanese scrap prices at the moment," he said. Traders are paying around Yen 26,000/mt FAS to collect H2 material to be exported from eastern Japan, down from Yen 26,000-26,500/mt FAS at a week earlier.
In Japan, leading mini-mill Tokyo Steel Manufacturing has been holding its scrap buying prices since January 11 and has been paying Yen 27,500/mt at its Utsunomiya works, north of Tokyo. But some other mini-mills have cut their purchasing prices by around Yen 500/mt during the week with smooth scrap arrivals.
"Some distributors have been rushing and delivering their scrap in anticipation of a fall in prices, it led some mills to secure sufficient scrap," a procurement official from a Kanto-based mill said.
The heavy melting scrap market in East Asia has remained extremely quiet as regional mills are not even receiving offers before the Lunar New Year holidays starting this Friday, regional trading sources said.
"No one is even receiving offers as everyone in Vietnam already left for holidays this week," a Vietnamese trading source said.
Other mills in the region including South Korea and Taiwan are also waiting until after the Lunar New Year holiday season to return to the market, the sources said.
The latest HMS booking was only made last Thursday by Hyundai Steel when it booked one US deep sea cargo of 40,000 mt at $279/mt CFR South Korea on a HMS I basis for March arrival, as Platts previously reported.
"Given Turkish scrap prices falling, the bearish sentiment is expected to flow to East Asian scrap prices as well," a source close to Hyundai said.
Both South Korean and Vietnamese mills have already secured sufficient scrap inventories until February and are expected to become active again after the holiday season, Platts was told.
On Wednesday, Platts lowered its East Asian bulk HMS I/II 80:20 scrap assessment to $265-$275/mt CFR. The implied midpoint of $270/mt CFR was down $11 from last week's midpoint.
