Export trade is becoming ever more attractive to Japanese scrap collectors. In mid-January importers’ interest in additional volumes of the material has risen, which has been reflected in higher purchase prices. South Korean holding Hyundai Steel is already bidding JPY 38,500/t FOB for Japanese HMS 2, which means $464/t FOB at the exchange rate $1 = JPY 83.005. A week earlier the material was priced at JPY 36,000/t ($434/t) FOB.
Notably, for the first time in more than three months foreign consumers’ bids for Japanese material exceed buying prices of local steelmakers. This can be attributed to importers’ urgent need of steel scrap for their stable operation.
At the same time, domestic prices have been unchanged from a month ago. In particular, Tokyo Steel has not revised its bids since December 21.
The company’s subsidiaries Okayama and Kyushu are now purchasing local HMS 2 at JPY 37,000/t ($446/t) for seaborne and overland arrivals (all prices are given exclusive of 5% VAT). Takamatsu is bidding at JPY 35,000/t ($422/t), any type of delivery. Tahara is ready to pay JPY 36,500/t ($440/t) for HMS 2, seaborne arrivals and JPY 37,000/t ($446/t) for overland arrivals. Utsunomiyа is purchasing similar material at higher price – JPY 37,500/t ($452/t) for overland arrivals.
Market commentators believe Japanese domestic quotations will move closer to export ones soon. Export offers will continue rising as well since taking into account current consumer activity in South Korea, the suppliers will be able to implement another price increase easily.
by Metal Expert LLC
by Metal Expert LLC
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