Japan: Kanto scrap export tender unconclusive on falling bids

Japan's monthly Kanto scrap export tender for Nov'21 was conducted today. The average bid price for H2 scrap stood at JPY 51,124/t ($453/t) FAS, SteelMint learnt from sources. The average bid fell by JPY 2,089/t ($19/t), m-o-m. Notably, this month, the tender remained inconclusive with no deals closed as bids received were lower compared to the prices last month which were trading at multi-year highs.

In Oct'21, a total of 11,000 tonnes (t) of Japanese H2 scrap were awarded at an average price of JPY 53,213/t ($469/t) FAS, SteelMint learnt from sources.

The bids have fallen following the decline in bids for Japanese scrap from Vietnamese and South Korean mills over the past couple of weeks.

Market highlights

• Hyundai Steel cuts bids for Japanese scrap: South Korean steel major Hyundai Steel slashed bids for Japanese ferrous scrap last weekend. Bids have fallen by JPY 3,000/t ($26/t) for H2 grade scrap compared to the last bid on 22 Oct'21, and are now at JPY 51,500/t ($453/t) FOB Japan. Bids have fallen due to declining bids in the Asian markets along with the drop in Tokyo Steel's scrap purchase prices.
  
  
• Trade slow-down in Vietnam: Imported scrap prices in Vietnam have cooled down after witnessing a sharp rally. Japanese bulk H2 offers are now heard at $525-530/t CFR Vietnam basis, a decrease of $20-25/t w-o-w. However, no firm deals were heard as buyers were bidding still lower than the current offers.
  
  
• Buyers in Bangladesh await price correction: Buyers of Japanese bulk scrap in Bangladesh have remained quiet for a long time. Yet, they are waiting for further price corrections for bulk. No firm offers were received from suppliers.
  
  
• Tokyo Steel further slashes scrap bids: Japan's leading steel producer, Tokyo Steel, has lowered scrap purchase bids by JPY 500/t ($4/t) for all plants from 11 Nov'21. After the revision, the company's bid price for H2 scrap stands at JPY 56,500/t ($500/t) for the Tahara steelworks, and JPY 55,500/t ($491/t) for the Utsunomiya works. The company had last lowered bids by JPY 1,000/t ($9/t) for Tahara on 4 Nov'21.
  
  

Prices in JPY
Source: Tokyo Steel