Posted on 20 Oct 2021
Japanese scrap prices continue to rise domestically and in export markets, Kallanish notes.
In South Korea, Hyundai Steel secured Japanese scrap in its auction late last week. The leading electric arc furnace mill ordered HS grade scrap at JPY 61,000/tonne ($535/t) fob Japan and Shindachi Bara (Busheling) grade at JPY 67,000/t fob, Seoul-based trading sources confirm. The combined tonnage ordered was 23,000 tonnes. While the mill did not order H2 grade in that particular auction, it did bid for H2 scrap at JPY 52,000/t fob.
Japanese scrap prices have jumped significantly since last month, a Seoul trader says. He attributes this to rising domestic scrap prices amid tight supply in South Korea recently. Another relates that H2 prices have been rising weekly this month. Korean mills were paying for H2 scrap at around JPY 45,500/t fob during 17 September-1 October, and then prices soared to JPY 52,000/t fob on around 8 October, and rose again to JPY 53,500/t fob on 15 October.
In Vietnam, offers for H2 scrap are prevailing at $544/t cfr Phu My, up from $535-540/t cfr last week. There are no bids recently, Vietnamese trading sources say.
In the Japanese domestic market, Tokyo Steel raised its scrap procurement prices at its Utsunomiya steelworks, for the fourth time since the start of October, giving a total hike of JPY 7,000/t. It is paying JPY 54,000/t for H2 grade scrap trucked to the steelworks, effective 19 October, up JPY 1,000/t from 9-18 October.
Source:Kallanish
