A total of 18,100 t of scrap was awarded, with the average price at around JPY 55,438/t ($406/t) FAS for H2 scrap, at Japan’s bellwether Kanto Tetsugen scrap export tender which concluded on 9 March 2023, SteelMint learnt from sources.
Bid prices increased by JPY 2,076 /t ($15/t) m-o-m compared to bids of JPY 53,362/t February. Bids increased for the third successive month and reached the highest level in 11 months since April 2022 when it had soared to JPY 67,010/t at the outset of the Russia-Ukraine crisis.
The first bid was placed for 3,100 t at JPY 55,680/t ($408/t) FAS to Taiwan, while the second was for 15,000 t at JPY 55,388/t ($406/t) FAS to Bangladesh, among the 15 companies that participated in the tender, according to sources.
The significant hike in bid prices was led by material shortage, Turkiye’s increased demand after the earthquake, and the depreciating Yen. The currency depreciated by around 4% in the last month.
(Current rate: JPY =136.7 against US$ Vs. rate: JPY =131.49 against US$ on 10th Feb)
After the increased bid in the Kanto tender, Japan’s domestic scrap prices also increased. The bid prices also exceeded steelmakers’ expectations in the Tokyo region.
Japan’s major EAF steelmaker, Tokyo Steel, has resumed scrap purchases after a month’s gap. The company has raised purchase prices for all its plants by JPY 2,000/t ($15/t), effective March 10. After the revision, prices for H2 scrap stand at JPY 55,500/t ($406/t) delivered to Tahara, Utsunomiya and Okayama plants.
Buyers’ market overview
- South Korea: South Korea’s Hyundai Steel has raised its bid prices for imported Japanese scrap by JPY 3,000/t ($22/t) after two weeks’ gap. Bids for H2 scrap now stand at JPY 54,000/t ($395/t), and those for HS grade are at JPY 57,000/t ($417/t) FOB. The company has raised prices following an increase in bids in the Kanto Cheorwon tender. However, trade is absent and is likely to resume soon.
The company is likely to lower its bid price for domestic scrap for the Incheon and Dangjin plants, effective from 15 March, by up to KRW 10,000/t ($8/t), as per Steel Daily.
- Bangladesh: The prominent Japanese scrap buying country has booked a 15,000 t bulk cargo at Japan’s Kanto tender at $470/t CFR Chittagong. A Bangladeshi mill has also booked Australian bulk cargo recently.
Outlook: As prices inched up in the recently concluded Kanto scrap export tender, Japan’s scrap export offers may increase further.
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