Japanese ferrous scrap export prices moved up on Wednesday. Suppliers have returned to the market after golden week holidays.
The monthly ferrous scrap export tender, Kanto Tetsugen concluded on Tuesday, May 12, with average bids up by JPY1,820/mt ($17/mt) from the prior month. The tender sold 23,000mt ferrous scrap with average winning bids at JPY22,476/mt ($209/mt) fas Tokyo Bay from JPY20,656/mt ($192/mt) fas Tokyo Bay in April.
A supply tightness and recovery in Chinese steel demand could support steel and scrap prices in the near term.
In Japan’s major export markets like Vietnam and South Korea, domestic ferrous scrap prices rose this week. This, mainly on the back of a fall in collection rates and dipping inventories with manufacturers. Japanese sellers thus looked to raise offers for buyers in these countries.
The weekly Davis Index for #2 HMS settled at JPY21,500/mt ($201/mt) fob Japan on Wednesday, up by JPY500/mt. Late last week #2 HMS traded at JPY21,500-22,000/mt fob Japan. South Korean mills were offered #2 HMS at JPY22,500-23,000/mt fob Japan on Wednesday but limited trades were reported at these levels.
In small bulk cargoes, #2 HMS was offered at $250-255/mt cfr Vietnam with bids in the range $240/mt cfr Vietnam.
The Davis Index for busheling settled at JPY24,000/mt ($224/mt) fob Japan, down by JPY500/mt from the prior Wednesday.
The Davis Index for Japanese HMS 1&2 (50:50) in small bulk cargoes settled at $235/mt cfr Taiwan, up by $2/mt from the prior Wednesday. Taiwanese mills placed bids for #2 HMS at $230/mt cfr Taiwan, however, amid strengthening global ferrous scrap prices no supplier was ready to accept these prices.
The index for HMS 1&2 (50:50) settled at $243/mt cfr Vietnam, up by $3/mt from the prior week. Offers for busheling scrap in small bulk cargoes were at JPY25,000-25,500/mt fob Japan, up by JPY500/mt from the prior week. The weekly index for #2 HMS settled at JPY21,000/mt fas Tokyo bay, up by JPY500/mt. The indexes for HS and shredded increased by JPY500/mt to settle at JPY24,500/mt and JPY24,000/mt fas Japan, respectively.
Japan’s domestic scrap prices remained flat amid weakened demand in the country. Tokyo Steel kept prices unchanged with the closure of its plant and has allowed employees to work from home till May 11. Bids for #2 HMS remained unchanged at JPY18,500/mt delivered Utsunomiya in Kanto region and JPY17,500/mt del Kyushu plant. Bids for busheling at Tahara and Utsunomiya remained at JPY20,500/mt fob Japan.