Japanese scrap export prices stayed stable during the week with the maintained bid price by a South Korean mill while Japanese domestic prices rose slightly, sources in Tokyo said.
S&P Global Platts assessed Japanese H2 grade ferrous scrap export price at Yen 32,500-33,000/mt ($292-$296/mt) FOB Tokyo Bay Wednesday, unchanged from last week's assessment.
On September 15, South Korea's leading electric arc furnace mill Hyundai Steel submitted its bid at Yen 32,500/mt FOB for H2 material, unchanged from its previous bid on September 8. Hyundai's bids for Shindachi grade were Yen 36,500/mt FOB and Yen 35,500/mt FOB for HS, both unchanged. The steelmaker is believed to have booked a total of around 20,000-30,000 mt through the latest tender, sources in Tokyo said.
Some other South Korean mills were heard negotiating with Japanese traders at Yen 32,500/mt FOB for H2, same with Hyundai's bid, but no contract was confirmed.
A Tokyo-based scrap trader said some South Korean mills have lifted their domestic scrap buying prices effective from September 19. "We are monitoring if this movement to support South Korean mills to accept higher Japanese scrap prices," he said. Hyundai Steel has lifted its domestic scrap buying prices by Won 10,000/mt ($9/mt) effective from September 19, sources said.
Vietnamese mills are currently targeting around $320-$325/mt CFR for 5,000 mt cargo of Japanese H2, while offer by Japanese are at around $335/mt CFR, equivalent to around Yen 33,300-33,400/mt FOB.
A Tokyo-based scrap trader said Japanese traders have already secured backlog orders, so most are not in hurry to sell scrap. "Japanese domestic scrap prices are rising, so we have to lift our target prices for export," he said. Traders are currently targeting around Yen 33,000-33,500/mt FOB for H2 export, up from Yen 33,000/mt FOB a week earlier.
In Japan, traders are currently paying around Yen 32,000/mt FAS to collect H2 material to be exported from eastern Japan, up Yen 500/mt from a week ago.
Japan's leading mini-mill, Tokyo Steel Manufacturing has lifted its scrap buying prices by Yen 500-1,000/mt for three works and a steel center, effective from September 16 arrivals and by Yen 1,000/mt for two works and a steel center effective from September 21 arrivals. H2 price at Okayama works, western Japan become Yen 32,000/mt, up by total Yen 2,000/mt and those at Utsunomiya works, north of Tokyo remains unchanged at Yen 33,000/mt.
The Asian bulk heavy melting scrap market continued remaining quiet during the week, regional sources said.
Currently, offer prices and buying interest still remain at the same level in South Korea. While offers at around $355/mt CFR South Korea for the US-origin bulk HMS I scrap, the buying interest is still staying at $350/mt CFR South Korea on HMS I/II 80:20 basis, according to Seoul-based sources.
The latest bulk booking to East Asia was made on Sep 8 when Hyundai Steel confirmed two bulk cargoes of a total of around 90,000 mt at $351/mt CFR South Korea on HMS I basis, the source close to the company said.
In Vietnam, mills also continue focusing on short-distance bookings including Japanese and Hong Kong-origin scrap, Vietnam-based sources said.
"We are not receiving any offers for bulk cargoes," a Vietnamese major mill source said. Meanwhile, mills are collecting offers for Hong-Kong origin scrap on HMS I/II 50:50 basis at around $341/mt CFR Phu My, the source added.
"Currently, there are no offers for bulk scrap to Vietnam as mills prefer to focus on short-distance bookings with smaller volume," another Vietnam-based mill source said.
Platts assessment price for East Asian bulk HMS I/II 80:20 scrap remained unchanged at $350-$354/mt CFR Wednesday, from the previous week.
