After a gap of five months, Japan’s Kansai-Cheorwon scrap export tender was concluded on 19 Oct’21. The winning bid was awarded a total of 5,000 tonnes (t) mainly of Japanese H2 at an average price of JPY 55,150/t ($483/t) FAS, up significantly by JPY 6,002/t ($53/t) as compared to the bids fetched on the previous Kansai tender of JPY 49,148/t ($431/t) FAS in May’21, as per Japan Metal Daily.
The shipment of this tender would likely settle on or before 20 Nov’21. Subsequently, this was the second fruitful bid result after JPY 66,300 ($581/t) held on 13 Jun’08. Apparently, the result of this bid is slightly higher than the procurement price of the local electric furnace manufacturer.
Tracking the demand from local buyers, the mill was mostly trading in the domestic scrap market. With the recent hike in the tender outcome, Japanese scrap export offers are likely to move up further.
Regarding the result of this tender, sources said, “Overseas economic activity is on a recovery trend after the pandemic , and the low overseas market is approaching the Japanese market. It was a high bid result.”
“The number of small and medium-sized dismantling projects is increasing, and the amount generated is on the rise. Manufacturers’ production volume is also increasing from last month, and cargo movements are fair. Market conditions will continue to be strong,” he added.
Japanese scrap prices at 13-year high: The monthly Kanto Tetsugen ferrous scrap export tender for Oct’21 was concluded on 12 Oct’21. A total of 11,000 t of Japanese H2 scrap was awarded to the winner at an average price of JPY 53,213/t ($466/t) FAS, SteelMint learnt from sources. The average bid price has moved up significantly by JPY 6,953/t ($61/t) m-o-m against Sept’21. Japanese scrap prices are seen trading at 13-year highs.
Moreover, Tokyo Steel has also announced a hike in scrap purchase prices for the sixth time in Oct’21. The company raised bids by JPY 1,500/t ($13/t) for its Tahara unit, effective from tomorrow. Post-revision, the company’s bid price for H2 scrap will stand at JPY 58,500/t ($513/t) however, prices for all other plants remained unchanged.
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