JAPAN STEEL SCRAP: Prices down amid bearish sentiment, low S Korea demand

Prices for cargoes of steel scrap exported from Japan fell for most grades on Wednesday September 16 following a drop in appetite among South Korean steelmakers and a worsening of the market environment, sources have told Fastmarkets.

Several producers in South Korea were undertaking maintenance work in September-October, reducing the requirements for scrap in the country and thus also reducing the likelihood of new deals, a local mill source said.
One major South Korean steelmaker will cut its steel output by around 300,000 tonnes over the next month because of maintenance outages, according to a Japanese supplier.
Low demand in South Korea, together with continued buying of Japanese scrap in Vietnam, has widened the gap between the two markets over the past week, creating a very divided market landscape.
Japanese scrap is generally sold to South Korea at lower prices than to Vietnam because the tonnages involved to South Korea, which are usually 2,000-3,000 tonnes, were lower than those to Vietnam, which generally takes more than 5,000 tonnes per cargo.

There were also more Japanese exporters able to service the Korean market than...

Published

Lee Allen

September 16, 2020

13:25 GMT

Singapore