Worsening political tensions between Japan and South Korea could result in a supply surge of ferrous scrap in the rest of Asia if Japanese materials are diverted elsewhere in the region as expected.
"More cargoes of Japanese scrap are expected to be diverted to Vietnam in the near term because South Korea has stepped up radiation checks on inbound cargoes, causing demand from South Korean mills to dip," an industry source in Japan said.Buyers of Japanese scrap in Asia are also staying away from the market ahead of the next auction by Kanto Tetsugen - a cooperative of scrap dealers in the Tokyo area - on Friday August 9, to see how prices move in comparison with those in July. Japan is also expected to quieten down next week due to the Bon Festival, during which market participants are expected to take time off to pay respect to their ancestors.VietnamFastmarkets' price assessment for bulk shipments of steel scrap HMS 1&2 (80:20), cfr Vietnam was $310-315 per tonne cfr on Thursday August 8, down $5 per tonne from $315-320 per tonne cfr a week...