Japanese scrap prices have witnessed some correction after the decline in bids seen in today’s monthly Kanto scrap export tender. A total of around 14,000 tonnes (t) of Japanese H2 scrap were awarded at an average price of JPY 47,888/t ($436), FAS in Japan’s monthly Kanto Tetsugen ferrous scrap export tender for Jul’21 which was concluded today, SteelMint learnt from its trade sources.
The highest bid is lower by JPY 1,307 ($12) against last month’s tender concluded at JPY 49,195/t levels. After today’s tender results, Japanese H2 scrap export prices may see some adjustments from the prevailing levels. However, high-grade prices are less likely to fall on demand-supply mismatches, SteelMint understands.
Around 15,000-20,000 t of H2 scrap is sold monthly, through the 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.
Japanese scrap prices in Vietnam weaken further: Imported scrap trade in Vietnam remained mostly absent last week amid less demand for finished steel on rising Covid cases. Japanese scrap offers for H2 remained at $490/t CFR Vietnam levels, down by $5 against offers assessed earlier in the week.
Chinese buyers quiet for Japanese scrap bookings: Chinese buyers have continued to bid low for imported Japanese HRS 101 grade scrap. Thus, the bid-offer disparity has kept trading muted. Bids are hovering around $520/t CFR levels against the offers of $570-600/t CFR. Chinese mills are showing more to interest in billets, which is now available at $675-685/t CFR levels.
Japanese scrap exports drop in May’21 m-o-m: Japan, one of the world’s leading ferrous scrap exporters, registered a significant drop of 0.68 million tonnes (mn t) in exports of the material in May’21 against 0.86 mn t in Apr’21, as per customs data maintained with SteelMint. Firm domestic steel demand resulted in active scrap procurement by Japanese local steel mills while volatility in freight rates impacted Bangladesh’s bulk scrap purchases from Japan.
Tokyo Steel cuts scrap purchase price at two of its works: Japan’s leading EAF steel mill, Tokyo Steel, announced the first scrap purchase price revision for the month on 9 Jul’21. The company has decreased prices by JPY 500/t ($5/t) for two works, Tahara and Kyushu. After today’s revision, the company would pay a bid price for H2 scrap at JPY 51,000/t ($464) for the Tahara works. However, prices remain unchanged for three other works, including Utsunomiya.
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