Japanese ferrous scrap export prices continued to rise after the Kanto tender. Deals for #2HMS were heard at JPY26,000-26500/mt($244-251/mt) fas while deals on fob basis were at JPY27,500/mt. Trades for HS and Shindachi were at JPY28,500-29,000/mt and JPY28,500-29,000/mt fas, respectively.

 

The weekly Davis Index for #1 busheling(Shindachi) rose by JPY300/mt to JPY28,750/mt fas and JPY30,000/mt fob. The index for HS rose by JPY500/mt to JPY28,750/mt fas, while on fob basis settled up by JPY300/mt at JPY30,000/mt.

 

Yards offered Japanese HMS 1&2 (50:50) at $275/mt cfr Taiwan early this week but raised offers to $285-290/mt cfr while buyer showed no interest at these levels. The index for HMS 1&2 (50:50) rose by $10/mt to settle at $285/mt on Wednesday, on high bids. Offers for the same grade from Hong Kong were at $286/mt with no deals heard. Bulk cargoes of Japanese H2 scrap were offered at $287-293/mt cfr to southern Vietnam this week, and to northern Vietnam at $297-300/mt.

 

Domestic scrap prices in Vietnam are not as strong as imports. Mills cut long steel prices amid weak domestic demand. Vietnamese mills are cautiously buying imported ferrous scrap. Offers for HMS 1&2 (50:50) cfr Vietnam were heard at $292-295/mt.

 

The weekly Davis Index for shredded rose by JPY450/mt to JPY28,450/mt fas with deals at JPY28,200-287,00/mt. Vietnamese mills bid for Japanese shredded on cfr basis at $320/mt, which did not meet suppliers’ expectations.

 

The monthly Kanto tender impacted South-east Asian markets with suppliers raising offers for all scrap grades by around JPY500-1,000/mt from the prior week. Aiding the prices was also a domestic scrap supply crunch in South Korea, Taiwan, and Vietnam. Kanto Tetsugen also pushed the South Korean market. One mill reportedly bought Japanese H2 at $255/mt fob, while other H2 deals were heard at $280/mt and $288/mt cfr. Japanese sellers could raise prices further in the coming days.

($1=JPY106)

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