Hanoi Iron and Steel (HSV) – Tokyo Steel pushes scrap purchasing prices higher.
High-priced scrap purchasing facility with unlimited quantities | Quang Dat scrap
After a three-week break, Japan's largest electric furnace steel producer, Tokyo Steel - has increased scrap purchasing prices.
The company has raised the purchasing price for domestic HMS 2 scrap to 1,000‑3,000 JPY/Ton (7‑22 USD/Ton) in Okayama, Kyushu and Utsunomiya. Prices in the remaining regions have remained largely unchanged to date. The new price changes to about 39,000‑43,000 JPY/Ton (288‑318 USD/Ton) and takes effect from August 19. This price change announcement ended the company's trend of reducing purchasing prices, which lasted from early May until now. The improving price situation is contributed by a higher level of interest from abroad as well as more positive domestic market information.
Prices of scrap imported from Türkiye decreased slightly at the end of the week.
A company in Türkiye purchased 23,000 Tons of HMS 1&2 scrap (80:20) at a price of 393 USD/Ton CFR from Venezuela, with immediate delivery.
Most of the negotiations in the market are slow because the majority of Turkish producers are not willing to accept current prices. Insiders believe the situation will be clearer next week as there is currently no change in prices. With the current situation, Metal Expert source commented that scrap HMS 1&2 (80:20) from the US East Coast is at 394 USD/Ton CFR Türkiye on August 19 compared to 395 USD/Ton CFR a day before.
Imported scrap prices increased in the Vietnamese market.
The price of imported scrap in Vietnam continues to increase following the trend of increasing prices in the international market. Although domestic demand for finished steel products is still weak, the level of interest in imported scrap has somewhat improved. However, domestic prices are still more attractive.
HMS 1&2 scrap (50:50) bulk ship originating from Hong Kong was traded at 360 USD/Ton CFR Vietnam for September shipment this week (up 10 USD/Ton from the beginning of August). The offering price is at 370‑375 USD/Ton CFR Vietnam, an increase of about 10 USD/Ton compared to last week.
Offering prices for Japanese bulk ship H2 scrap have increased by 10‑15 USD/Ton, to about 385-390 USD/Ton CFR Vietnam. Purchase bids were quoted at USD 370/Ton CFR or less. No deals have been closed. Meanwhile, the feasible price in the domestic market for H2 waste is 376‑380 USD/Ton DDP in the North and nearly 370 USD/Ton DDP in the South.
Korean factories return to negotiate Japanese scrap.
Trading activity in Korea's imported scrap market remained limited in the third week of August. However, factories have adjusted prices for Japanese raw materials to suit current market realities and are more likely to reach agreements with sellers.
According to market information, the bid price for HMS 2 is at 42,500 JPY/Ton (312 USD/Ton) FOB and for scrap at 47,000 JPY/Ton (345 USD/Ton) FOB. In addition, businesses are also interested in purchasing HS and shindachi scrap at FOB price of 48,000 JPY/Ton (352 USD/Ton).
Japan's HMS 2 is currently estimated at 348-359 USD/Ton CFR Korea.
Sources said Korean factories are looking for scrap as market signals are improving. No negotiations have been heard in South Korea for US or Russian scrap suppliers.
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