Around 10,000 t of scrap was awarded and the average price for H2 scrap stood at around JPY 49,865/t ($341/t) FAS at Japan’s bellwether Kanto Tetsugen scrap export tender, SteelMint learnt from sources.
Prices fell by JPY 1,175/t ($8/t) from JPY 51,040/t ($357/t) in September. Prices moved down in the absence of bids from buyers.
The deal was concluded in two slots for 5,000 t each at JPY 50,120/t and JPY 49,610/t FOB. Sources revealed that one of the bulk cargoes was booked by a South Korean mill in alliance with buyers from Vietnam, Taiwan, and other nations.
Despite the fall in bid prices, Japanese scrap export prices are still on the higher side. Buyers are likely to resume bookings ahead of the winter season.
FOB prices for exports of Japanese material are higher by around $9-10/t compared to FAS prices. The Kanto tender serves as a benchmark for the Japanese scrap export market. Japanese suppliers are likely to keep their offer prices higher as the sharp devaluation in the Japanese currency may support the export market, SteelMint notes.
The Japanese Yen is trading at 146.1 in the currency exchange market, down further against 142.1 recorded a week back.
Buyers not active
- South Korean mills book bulk cargoes: South Korea’s major mills and prominent Japanese scrap buyers have booked bulk cargoes in today’s Kanto scrap export tender. On the other hand, Dongkuk Steel booked a Russian A3 cargo containing 10,000 t at $400/t CFR earlier this week, which is expected to arrive in November.
Meanwhile, South Korea’s major steelmakers are increasing domestic scrap procurement prices by up to KRW 20,000/t ($14/t) effective 12 October, as per a SteelDaily report. Dongkuk Steel’s Incheon plant and SeAH (Changwon) will lift prices by KRW 20,000/t($14/t) for tin followed by KRW 15,000/t($10/t) for other grades.
- Bangladesh books bulk cargoes: Bangladesh continued its bulk cargo bookings from the EU and US suppliers. Recently, two major mills have booked 32,000 t of mixed bulk cargo, which included HMS 1 and 2 (80:20) at $418/t and $415/t CFR Chittagong, respectively. Indications for Japanese H2 heard at $410/t CFR levels. Market experts believe prices may go up after the Kanto tender result.
- Vietnamese mills on sidelines: Vietnam’s imported scrap market has been mostly quiet over the last couple of weeks. However, a small parcel was heard to have been booked in today’s Kanto tender. Despite imported scrap prices continuing the downtrend, buyers and steelmakers postponed fresh bookings and were inactive in the market on the back of low movement in the finished steel sector. Indicative offers for Japanese bulk H2 scrap were heard at $380-385/t CFR.
Japan’s Tokyo Steel’s bids unchanged: Japan’s major EAF steelmaker, Tokyo Steel, kept its domestic scrap purchase prices unchanged today. The company lowered its bids for H2 scrap by JPY 500/t ($3/t) for all plants last weekend. Post-revision, prices of H2 scrap are at JPY 48,500/t ($336/t) delivered to the Tahara plant and JPY 49,500/t ($343/t) for the Utsunomiya plant.
Outlook: Prominent Japanese scrap buyers like Vietnam and South Korea may resume bookings to an extent, considering that this is the peak season for finished steel consumption and construction activities. Meanwhile, Bangladesh-based mills may prefer to source material from other origins.
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