Japanese ferrous scrap export prices trended up on Wednesday with Tokyo Steel raising domestic scrap purchase prices for all grades by JPY500/mt for Okayama and Takamatsu works on Tuesday. Domestic scrap prices rose after three weeks with the index for #1 HMS settling at JPY26700/mt delivered Okayama plant on Wednesday.
Scrap exporters raised offers despite limited deals as they expect demand for ferrous scrap to improve in the domestic market. However, Japanese HRC prices remained under pressure due to the availability of lower-priced material from China.
In the Kanto region, the Davis Index for #2 HMS settled at JPY26,500/mt($253/mt) fas port, up by JPY600/mt. Negotiations are in process, but no deals were heard. The index for the same grade rose by JPY333/mt to JPY26,833/mt fob Japan.
HS deals were heard this week at JPY29,000-29,500/mt fas with index for the grade settling at JPY29,250/mt fas, up by JPY500/mt.
With offers rising, no deals were heard for other grades as Korean and other steel mills refused to raise their bids. The index for #1 busheling (Shindachi) rose by JPY250/mt to settle at JPY29,750/mt fob from the prior week. In domestic market, the weekly index for #1 busheling (Shindachi) rose by JPY500/mt to JPY29,250/mt fas Japan.
The weekly Davis Index for shredded settled at JPY29,200/mt fas, up by JPY500/mt from a week ago, but no deals were heard. South Korean mills focused on more bulk cargo deals which are priced lower than containerized scrap.
The index for #1 HMS rose by JPY500/mt to settle at JPY28,000/mt fas and down by JPY250/mt at JPY28,250/mt fob Japan, with deals at the index level. Traders indicated that domestic prices in Japan might rise further on global cues and shortage of ferrous scrap for domestic mills.
Yards offered Japanese HMS 1&2 (50:50) on Wednesday at $285-290/mt cfr Taiwan, up by $5-10 from the prior week. Bids were at $280/mt cfr. The index for the grade rose by $5/mt to settle at $284/mt cfr Taiwan. The index for the same grade rose by $4/mt for Vietnam to settle at $293/mt cfr, with no trades heard. Bids for the grade were at $290/mt cfr Vietnam.
Traders are optimistic of a recovery in demand as steelmakers are likely to ramp-up production soon.