The price of heavy grade 2 scrap exported from Japan fell for the seventh consecutive week, dropping by $38 in August. The average offered price of heavy scrap grade 2 fell by $14 on the week to $320 per tonne FOB.
According to the reports, several factors played a role in this downward trend. First, the rise in the value of the Japanese yen has made Japanese scrap more expensive for foreign buyers, and in consumer markets such as Korea and Vietnam, where the willingness to buy is low due to rising costs and falling demand, Japanese scrap was not bought and prices fell. On the other hand, the global steel market is also in recession and this recession has made competitive prices of alternatives such as billet more attractive for scrap buyers, with Japanese scrap buyers, especially from Vietnam, going to buy from South Korea, Hong Kong or Russia. Japan's scrap has also been ignored.
Scrap prices in Japan are expected to continue their downward trend unless there is a significant change in global economic conditions or a significant increase in buyers' willingness to buy.
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