While Japanese scrap suppliers are trying to increase their offers to Vietnam, buyers have not been convinced to accept higher price offers yet. A softening continues for ex-US scrap offers given the impact of the declining international scrap market. All players in the region are awaiting an announcement after the meeting of China’s National People’s Congress held on November 4-8.
Offers for Japanese H2 scrap to Vietnam have moved up by another $5/mt over the past week to $345-350/mt CFR. However, buyers are mainly aiming for $340/mt CFR, but are also waiting to see the result of Japan’s Kanto scrap export tender which will be held next week.
Ex-US bulk HMS I/II 80:20 scrap offer prices are currently at $370-375/mt CFR, $2.5/mt lower than the prices recorded last week. Sources report that there is little interest to ex-US scrap offers, with buyers’ targeted levels for this grade remaining at around $365/mt CFR.
In the current week, Tokyo Bay FAS-based prices for H2 grade scrap have remained stable at JPY 42,500/mt ($279/mt), while up by $1/mt on US dollar basis due to the changes in the Japanese yen-US dollar exchange rate. This level shows that FOB prices are still at JPY 43,500/mt ($286/mt) for this grade, with the US dollar price up $1/mt since last week.
Ex-Japan HS scrap prices are standing at JPY 46,500/mt ($305/mt) FAS and shindachi scrap quotations are at JPY 46,000/mt ($302/mt) FAS. The dollar-based prices for both grades have moved up by $1/mt over the past week.
$1 = JPY 152.31