Kanto Tetsugen- Japan’s monthly ferrous scrap export tender concluded today for the month of Jan’21. The winning bid was awarded a total of 15,000 t of Japanese H2 scrap at an average price of JPY 44,751/t ($432) FAS, as compared to JPY 38,710/t ($371) in Dec’20, SteelMint learnt from its sources. Current conversion rate- $1 = JPY 103.8
Notably, the cargo has been booked by Bangladesh based prominent steel mills. This month’s average bid climbed up significantly by JPY 6,041/t ($58) against last month’s bid and the sixth successive hike was observed on a monthly basis since Aug’20.
The tender received three bids for 22,000 t, however, only one bid was accepted while other two were rejected due to the high burden of scrap exports. The other two winning bids were 6,000 t each at JPY 44,210/t and JPY 44,110/t FAS, for Japanese H2 scrap respectively, which was rejected later.
Monthly, around 20,000-25,000 t of H2 scrap is auctioned through Kanto tender and the FoB prices for the same are higher by around $9-10/t vis-a-vis FAS prices. The tender serves as a benchmark for the Japanese scrap export market.
Japan’s ferrous scrap exports fall by 26% m-o-m in Nov’20– Japan – the world’s leading ferrous scrap supplier observed a decline by 26% m-o-m and stood at 0.66 mn t in Nov’20, as per data recorded with SteelMint. Vietnam remained the largest buyer and accounted for 48% share in Japan’s Nov’20 scrap exports. A sharp increase in domestic scrap consumption on improved steel demand resulted in a drop in Japanese scrap exports.
Recent Japanese scrap export deals– A Vietnam-based steel mill has booked around 3,000 t Japanese H2 scrap cargo at $465-470/t CFR Vietnam basis, towards the closing of last week. Japanese bulk H2 scrap offers to Vietnam have moved up and were heard at $495-500/t CFR levels. However, fresh offers are yet to be quoted.
Thanks to Chinese traders, Japanese scrap export market remained active during last week. A Chinese scrap trader has concluded a deal of 3,000 t of Japanese HS grade scrap. The deal was heard to have been concluded at $485/t CFR China basis during New year holidays. However, fresh offers are heard close to $500-505/t CFR levels.
Japan’s Tokyo Steel cuts scrap purchase price – Japan’s leading EAF mill- Tokyo Steel has cut its scrap purchase price for Utsunomiya plant (Kanto region) by JPY 1000/t ($9.6) today, immediately after Kanto result concluded early in the morning. The company would pay bid price for Utsunomiya at JPY 42,000/t ($405), effective from tomorrow (14th Jan’21). Prices for other four plants remained unchanged for now. The company has cut its purchase price after six months since July’20.
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