Scrap prices move up in Asia
Posted on 12 August 2020
Importers in Asia are accepting higher prices for scrap, Kallanish understands.
In Vietnam, Japanese H2 purchase prices have risen by more than $10/tonne from end-July, with offers prevailing at $275-280/t cfr Vietnam last week.
Mills in southern Vietnam booked Japanese H2 scrap at $270/t cfr last Thursday. Japanese H2 scrap was last booked at $273/t cfr on letter of credit at sight, also to southern Vietnam, a Vietnamese trader reports. There was also a 15,000-tonne deal to northern Vietnam at $275/t cfr on a 90-day LC.
An importer says he also heard several cargoes booked last Friday at these levels. The Japanese scrap export market has quietened this week due to a holiday in Japan.
Leading electric arc furnace operator Tokyo Steel started paying JPY 23,500/t ($222/t) for H2 scrap purchases trucked to its Utsunomiya steelworks, located north of Tokyo from 8 August. This is the company's second JPY 500/t price hike so far for the month of August. It was paying JPY 22,500/t during 28 July-4 August.
Meanwhile, US bulk scrap prices have also risen. A US supplier was heard by some sources in South Korea and Taiwan to have sold bulk scrap last week at $295/t cfr Vietnam HMS basis and $297/t cfr for shredded. The 30,000t cargo was heard to include 22,000t of shredded, 4,000t of HMS 1&2 80:20 and 4,000t of plate & structural scrap.
However, Vietnamese trading sources did not hear of the deal. A Vietnamese importer says those prices are too high to be concluded and that he was not able to confirm the deal. “It could be a one-off deal,” says a scrap exporter who regularly exports to Vietnam. “A lot of Vietnamese mills refused to pay such high prices (a week ago),” he adds.
There was a confirmed booking of 15,000-20,000t of Australian HMS 80:20 scrap at $285/t cfr Indonesia last week. Traders also report hearing of a 32,000t US bulk cargo to Bangladesh booked at $307.50/t cfr for 80:20 basis.
Source : Kallanish