Japanese ferrous scrap export prices hovered during the week to Wednesday, with market participants monitoring the further market movements, trading sources in Tokyo and Seoul said.
S&P Global Platts assessed Japanese H2 grade ferrous scrap export prices at Yen 30,500-31,000/mt ($268-272/mt) FOB Tokyo Bay Wednesday, unchanged from last week's assessment.
On Friday, Hyundai Steel, South Korea's leading electric arc furnace mill, maintained its bids unchanged for two consecutive weeks, a source close to the company said.
Hyundai's bid prices were at Yen 30,500/mt FOB for H2, Yen 34,500/mt FOB for Shindachi, Yen 33,500/mt FOB for shredded, and Yen 31,000/mt FOB for H1/H2. The steelmaker booked a total of 15,000 mt including 10,000 mt of H2, the source said.
No H2 bookings by other South Korean mills were heard during the week. "Many of South Korean mills have reduced their domestic scrap buying prices by around Won 10,000/mt [about $8.90/mt] during the week, so we believe they are not in hurry to buy Japanese scrap at the moment," a Tokyo-based scrap trader said.
Vietnamese customers continue eyeing prices around $305/mt CFR for Japanese H2 material, but no bookings were confirmed. "As Japanese Yen has weakened this week, prices in Yen are higher by around Yen 300/mt compared to last week to around Yen 30,700-30,800/mt FOB, closer to target prices by Japanese traders," another Tokyo-based scrap trader said.
Japanese traders are currently targeting around Yen 31,000-31,500/mt FOB, unchanged from a week ago.
Taiwanese mills have started showing their appetite on Japanese scrap. "Scrap deliveries from Taiwanese domestic distributors have decreased, and mills started eying at other imports," a Taipei based trader said. "We understand Taiwanese mills are eying below $300/mt CFR, but if they pay above $305/mt CFR, Japanese traders will start accepting," he said.
In Japan, traders are paying around Yen 30,000/mt FAS to collect H2 material to be exported from eastern Japan, unchanged from a week ago.
Most domestic mills have held their scrap buying prices during the week. Japan's leading mini-mill, Tokyo Steel Manufacturing has been holding its scrap buying prices since October 7, H2 buying price truck delivered to its Utsunomiya works, north of Tokyo has been kept at Yen 31,000/mt.
The Asian bulk heavy melting scrap market remained quiet due to lack of appetite from buyers, regional trading sources said.
The latest bulk booking was made by Hyundai Steel during the early week of October 16 at $322/mt CFR South Korea on HMS I basis for about 45,000 mt, sources said.
Another South Korean Mill, Dongkuk Steel Mill had booked Russian A3 scrap at $320/mt CFR South Korea during the early week of October 16 for about 10,000 mt and additional 15,000 mt this week at the same price, a source close to the company said.
Hyundai is also expected to book some Russian A3 during this week, sources said.
"Any bulk cargoes for this year's arrival are already over, mills will look for either end-November or early-December shipments if any," a Seoul-based trader said.
In Vietnam, mills are still remaining inactive in importing any long-distance scrap without collecting any offers, Platts was told.
Instead for shorter-distance scrap, one mill booked a small quantity of Hong-Kong origin scrap at around $300/mt CFR Vietnam for shredded, $298/mt CFR Vietnam for HMS I/II 50:50, and $324/mt CFR for PNS, a Vietnamese trader said.
Platts maintained East Asian bulk HMS I/II 80:20 scrap at $320-325/mt CFR Wednesday, from the previous week with midpoint of $325.50/mt CFR.
