Japan: Scrap export tender prices expected to shoot up in Dec on strong demand

Japanese scrap export price rally continues on strong demand both in domestic and overseas market. Market sources expect the 'Kanto Tetsugen' scrap export tender to fetch sharp hike in bids. The tender is scheduled next week. H2 scrap offers are heard around at JPY 34,000-34,500/t FoB levels, sources reported SteelMint. The price gap between H2 scrap and other higher grade scrap continues to widen due to the limited dismantled of large items. SteelMint's assessment for Japanese H2 scrap export stands at JPY 34,000/t FoB, up by JPY 3,000/t w-o-w.

Recent bookings by Vietnam mills lift Japanese prices further - Vietnamese steel mill has booked 10,000 t of Japanese H2 bulk cargo for Jan'21 shipment and the deal was concluded at $360/t CFR Vietnam basis. While the fresh offers are being reported at $370/t CFR levels, and offers have moved up by $15 as against the beginning of the week.

Bulk Japanese scrap offers for Bangladesh soar further - Limited offers and increased buying inquiries have pulled up imported scrap prices further in Bangladesh. Fresh offers for H2 now stands at $380/t CFR Chittagong level, up by $7 against the beginning of the week.

Hyundai Steel raise bids for Japanese scrap- South Korean mill - Hyundai Steel has lifted bids for higher grade Japanese scrap by JPY 3,000/t ($29), against last bids placed two weeks ago, SteelMint learned from its sources. The bid price for HS and shindachi is now set at JPY 37,000/t level, however, the company did not place any bid for other scrap grades including H2 scrap, as per SteelDaily report. The company has delayed restarting its 70 t and 80 t steel plants in Incheon, which may remain close until 16th and 18th Dec'20 respectively. The scrap consumption is expected to remain low for the time being.

Hyundai Steel books Russian bulk scrap cargo- On the other hand, Russian bulk scrap booking prices have risen significantly in a recent deal concluded by Hyundai Steel for Jan'21 shipments. The cargo comprises 46,000 t of Russian A3 scrap at $358/t CFR South Korea basis. The prices have increased due to a shortage of heavy goods, and the deal price is considered according to the market price.

Japanese domestic scrap prices up, Tokyo Steel observes three price revisions - Japan's leading EAF mill- Tokyo Steel has announced a price hike for scrap purchase thrice this week. Today, It has announced hike in scrap purchase price by upto JPY 1,000/t ($10) for three of its factories. The revised prices will be effective from tomorrow (5th Dec'20). The company would pay JPY 34,500/t ($331) for H2-scrap delivered to Tahara and JPY 30,500/t ($293) for Utsunomiya works in Kanto.