- Scrap export offers expected to fall by $10-15
- Tokyo Steel cuts domestic scrap purchase price in Kanto by $5
Kanto Tetsugan – Japan’s monthly ferrous scrap export tender for March’21 has been concluded on 10th March’21. 15,400 t of Japanese H2 scrap was awarded at an average price of JPY 42,976/t ($395) FAS, as compared to JPY 39,271/t ($375) FAS in Feb’21, SteelMint learned from its trade channels. This month’s average bid has risen significantly by JPY 3,705/t ($35) m-o-m against last month’s bid.
Bids in today’s monthly tender have risen amid global price hikes seen during the past one month on supply tightness, coupled with active restocking scrap demand & high freight rates. However, considering bids fetched in today’s tender, the scope of further price hikes seems limited.
Monthly, around 15,000-20,000 t of H2 scrap is sold through Kanto tender auction and the FoB prices for the same are higher by around $9-10/t vis-a-vis FAS. The tender serves as a benchmark for the Japanese scrap export market.
JPY has depreciated significantly against $ in the last one month. JPY is currently trading at 108.8 against $ which was JPY 104.5 a month ago.
“Though the bids have increased against last month, the market is in a downtrend. Japanese scrap offers are likely to come down. Suppliers would sell cargo as they have already held till the tender result so probably next week bulk bookings will happen” shared a prominent Japanese scrap trader.
Japanese scrap export offers likely to fall: SteelMint’s assessment for Japanese H2 scrap export made towards closing of last week stood at JPY 45,000/t ($417) FoB. Around 60,000 t of Japanese bulk cargo is heard to have been booked by Hyundai steel, comprising of shindachi and HS grade, towards the end of last week.
Bangladesh-based bulk scrap buyers are waiting for fresh offers. Last week, a Bangladesh-based steel mill has booked Japanese bulk scrap cargo, reliable sources have confirmed to SteelMint. The cargo comprised 20,000t of shindhachi grade scrap, though the prices have not been confirmed till the time of publishing this report.
Bulk H2 price indications are now heard around $470-472/t CFR Bangladesh, lower by $8-10 w-o-w.
SteelMint’s assessment for Japanese H2 bulk, made early this week, stood at $472/t CFR Vietnam basis. Vietnam-based steel mill has booked Japanese bulk scrap cargoes at increased offers, mid of last week, comprising 3,000 t of H2 grade at around $470/t CFR Vietnam. No fresh bookings have been reported yet.
Tokyo Steel slashes scrap purchase price at Kanto work by JPY 500 ($5): Japan’s leading EAF mill – Tokyo Steel has cut its scrap purchase price today for Utsunomiya work by JPY 500/t ($5). The company would pay JPY 42,000/t ($386) for H2 scrap delivered at Utsunomiya work in Kanto region, effective from 11th Mar’21.
Tokyo Steel’s scrap purchase prices
Prices in JPY
Source: Tokyo Steel report
Outlook: Japan’s domestic scrap purchase price likely to come down further tracking trend in export offers.
Leave a Reply