Japanese suppliers of H2 heavy scrap are experiencing difficulty in sourcing for supply, which has led to a rise in export prices for a second week, market sources told Fastmarkets.
Low supply has resulted in dockside scrap prices climbing again over the past week, which push up export offers and exert pressure on domestic steelmakers' margins since they are also struggling to obtain material.
"The Japanese scrap market is strengthening," a trading source in the country said on Thursday June 4.
"The generation of scrap is bad, and the price is high. I think there is a possibility that the price hike will continue for a while," he said.
Rising scrap prices in Japan's domestic market are causing local scrap dealers to hesitate about selling to the docks, a second Japanese trader said.
"The domestic scrap market is getting strong. Now we are waiting for the next Kanto [Tetsugen auction], which is next Wednesday. After that, we will consider what to do," he said.
Kanto Tetsugen is a cooperative...