Vietnamese buyers continued to exert pressure on Japanese scrap this week. With the lack of a strong competition in the absence of South Korea, Vietnam has more negotiating power. Also, limited performance of the finished steel market in the country has a negative impact on scrap segment.
Bids for Japanese H2 grade scrap to Vietnam were at around $380/mt CFR this week, showing the price ideas of sellers and buyers differ from each other. At the end of last week, offers for this grade were standing at $400-405/mt CFR. The number of offers received from Japan has been on the low side this week.
As of today, March 8, Tokyo Bay FAS-based prices for H2 grade scrap were at JPY 52,500/mt ($357/mt). This level shows that FOB prices are at JPY 53,500/mt ($364/mt) for this grade. Tokyo Bay FAS prices for HS grade scrap were at JPY 56,000/mt ($381/mt), while prices for shindachi scrap were at JPY 55,000/mt ($374/mt) FAS.
SteelOrbis’ reference price for ex-Japan H2 scrap has declined by JPY 1,500/mt on the lower end and by JPY 600/mt on the upper end to JPY 49,000-53,500/mt ($333-364/mt) FOB. Dollar-based prices have declined by $8/mt on the lower end but increased by $7/mt on the upper end due to the appreciation of the Japanese yen over the past week. The lower end is represented by Taiwan’s deal, while the upper end is represented by Tokyo Bay prices for this grade.
$1 = JPY 147.15