Cheaper H2 scrap from Japan is likely to limit the large quantities of heavy melting scrap (HMS) coming into the region from the United States, at least in the near term, market sources told Fastmarkets this week.
This is mainly because Vietnamese steel mills will be loathe to pay premiums for US-origin material when they can get Japanese scrap at cheaper prices.VietnamFastmarkets' price assessment for bulk-shipments of HMS 1&2 (80:20) imported into Vietnam was $302-305 per tonne cfr on Friday June 28, widening downwards by $1 per tonne from a week earlier.One steelmaker that produces steel using the induction furnace route was heard to have bought a 30,000-tonne cargo of HMS 1&2 (80:20) at $305 per tonne cfr, having purchased a similar-sized cargo last week.Another steelmaker was heard to have bought a HMS 1&2 (80:20) cargo at $302 per tonne cfr from the US West Coast.However, the decision by Tokyo Steel to lower its domestic purchase price...