Japanese ferrous scrap suppliers raise offers ahead of Kanto tender

Japanese scrap sellers have raised their offers prior to the Kanto tender, which happens to be the price-setter in the domestic as well as export markets.

Buyers are waiting for the Kanto Tetsugen scrap export tender expected to conclude on 9 March, 2023.

SteelMint's assessment for Japan's H2 scrap export offers stands at JPY 54,000/t FOB ($398/t), up JPY2,000/t ($15/t) w-o-w.

Taiwan has just returned from two days of Peace Memorial holidays from February 27-28, following which Japanese suppliers increased their offers to take advantage ahead of the Kanto tender.

In January, Japan's ferrous scrap exports increased 33% y-o-y to 500,000 t owing to higher shipments to South Korea, Vietnam and Bangladesh.

Market overview

• South Korean buyers quiet: South Korean steel-makers have remained relatively silent, not booking any new Japanese cargo. Mills have not bid for Japanese material this week since they have inventories and are not proactive in booking new cargoes.
  
  
• Bid-offer mismatch in Vietnam: Vietnamese mills are bidding lower than levels set by Japanese suppliers. Fresh offers for Japanese H2 scrap to Vietnam are at $450/t, while bid prices are at $435-440/t.
  
  
• Bangladeshi buyers booking Australian bulk cargoes: Steel manufacturers in Bangladesh are taking advantage of the easing of LC issues. Some big mills have just booked bulk cargoes from Australia at a favourable price. On the other hand, mills are less interested in Japanese material.
  
  

Outlook: Japanese scrap suppliers are hopeful that offers may increase after the Kanto scrap export tender on supportive domestic demand.