Japan: Kanto scrap export tender prices rise by $18/t in Feb'23

Japan's bellwether Kanto Tetsugen scrap export tender concluded on 9 February, 2022. A total of 11,500 t of scrap was awarded, with the average price at around JPY 53,362/t ($407/t) FAS for H2 scrap, SteelMint learnt from sources.

The first bid was placed for 6,000 t at JPY 53,510/t (408/t) FAS, while the second was for 5,500 t at JPY 53,200/t (406/t) FAS. According to sources, Korean and Taiwanese buyers won the bid.

Bid prices increased by JPY 2,430/t ($18/t) m-o-m compared to bids presented in January. Prices have continued to move up due to improving demand post Lunar New Year holidays. In January, around 11,000 t of scrap was awarded and the average price for H2 scrap stood at JPY 50,932/t ($389/t) FAS.

Similarly, the Kanto tender serves as a benchmark for the Japanese scrap export market. Hereafter, Japanese suppliers are likely to keep their export offers higher, SteelMint notes.

The Japanese Yen is trading at 130.8 in the currency exchange market, recovering 131.9 recorded a month back on 9 January.

Buyers market overview

• South Korean mills increase domestic purchase price: South Korean steel producers have adjusted their scrap purchase prices by KRW 10,000/t ($8/t), as per sources.
  
  

SeAH Besteel increased its scrap buy prices for all grades. However, POSCO has lowered scrap purchase price by KRW 10,000/t only for its Pohang plant, Prices for Gwangyang remain the same.

• Vietnam's offers rises post Tet holidays: Imported scrap prices in the country increased after the holidays. Offers from Japanese H2 scrap suppliers are slightly higher at $450/t. Offers for US-origin HMS 1&2 (80:20) were heard at $460/t CFR Vietnam, up $5/t w-o-w.
  
  
• Bangladesh's imported scrap market dull: Bangladesh's imported scrap market continued to remain muted, with trading activities mostly absent. Offer-bid mismatch and the delay in new Letter of Credit opening kept buyers away from the market. Indicators for Japanese H2 scrap are at $455/t CFR.
  
  

Tokyo Steel hikes scrap purchase prices by $19/t: Japan's major EAF steelmaker, Tokyo Steel, has resumed scrap purchases after nearly a month's gap post the Kanto tender outcome. The company has increased buy prices by JPY 2,500/t ($19/t) for all plants, effective 10 February. After the final revision, prices for H2 scrap stand at JPY 53,500/t ($408/t), delivered to the Tahara, Utsunomiya, and Okayama plants.