Japanese scrap export offers rise following surge in Kanto tender bids

• Bids surge at Kanto scrap export tender for Jan'22 after two inconclusive months
  
  
• Japanese scrap suppliers raise offers for Vietnam
  
  

Japan's monthly Kanto Tetsugen scrap export tender has concluded today after two months. A total of 10,100 tonnes (t) of scrap was awarded and the average price for H2 scrap stood at JPY 50,983/t ($442/t) FAS, SteelMint learnt from sources. The total bid quantity was recorded around 124,800 t.

Notably, two Vietnamese buyers remained the winners among the 22 bids from 15 companies.

Meanwhile, the cargoes have been booked in two slots of 5,000 t at JPY 51,010/t and 5,100 t at JPY 50,957/t FAS basis. Shipment is expected in Feb'22 end.

The last successful Kanto tender was concluded in Oct'21 and the average bid price hit multi-year highs of JPY 53,213/t ($469/t) FAS for just 11,000 t of Japanese H2. The tender remained inconclusive in Nov and Dec due to bid-offer disparities.

Higher bids in today's tender indicate the further scope of increasing Japanese scrap export prices in the near term.

Key buying countries

• • Vietnam's imported scrap market has witnessed a surge in offers after today's tender outcome. Price offer indications for Japanese bulk H2 have moved up to around $495-510/t CFR Vietnam, registering a sharp hike of $25-30/t against offers recorded on Monday, sources confirmed. Suppliers expect offers may increase further to $515-520/t levels.
    
    
  • South Asia's bulk scrap buyer, Bangladesh, extended its silence on bulk cargo bookings from Japan for yet another week. Indication for bulk Japanese H2 scrap offers are at $530/t CFR Chittagong, while buyers' bid price is lower by $20-25/t levels. Bangladesh-based bulk scrap buyers consider UK/US-origin bulk cargoes.
    
    
  • South Korean mills remained quiet as no bids were heard this week for Japanese material. As per reports by SteelDaily, POSCO has bid for HS material at JPY 58,000/t CFR levels on 7 Jan. Nevertheless, major steel mills, including Dahean, SeAH, Hyundai, and POSCO have increased bids to KRW 15,000/t for the domestic material. Interestingly, major South Korean steelmakers recorded scrap purchases at 22.06 mn t in CY'21, as per a SteelDaily report. Iron scrap (both domestic and imported) purchases grew by 12% compared to the previous year.
    
    
  • Tokyo Steel has cut scrap buy prices by $4/t for the first time in 2022 after a gap of over two weeks. The company has reduced bids by JPY 500/t ($4/t) for one of its steelworks effective 13 Jan. Post-revision, the company's bid price for H2 scrap stands at JPY 53,000/t ($460/t) delivered to Utsunomiya plant (located in Kanto region) while prices for the other plants remain unchanged.
    
    
  
  
  

Prices in JPY/t
Source: Tokyo Steel