Japan's monthly Kanto scrap export tender bids at 1-year high
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A total of 22,000 t of Japanese H2 scrap was sold at an average price of JPY 27,216/t ($258) FAS, a one-year high, at Kanto Tetsugen - Japan's monthly ferrous scrap export tender- which concluded today.
Average price at the previous tender in Jul'20 was JPY 23,574/t ($224). A bid for 15,000 t was awarded at JPY 27,285/t FAS ($259), 5,000 t was sold at JPY 27,070/t ($257) and 2,000 t was sold at JPY 27,060/t FAS.
SteelMint analysis
- Tight scrap availability in Japan has resulted in a sharp hike in bids.
- Typically, FoB Japan H2 export prices are generally higher by around $10/t higher than FAS prices. Considering the outcome of today's Kanto tender, Japanese scrap export prices should be around JPY 28,200/t ($267) FoB, a trader said.
- SteelMint's assessment for Japanese H2 scrap export offers last week was at JPY 26,000/t FoB Japan.
- Early last week, South Korea's POSCO had booked Japanese HS and shredded at around JPY 30,500/t ($289) CFR and JPY 30,000/t ($283) CFR basis respectively.
Japanese domestic scrap prices up further - Japanese domestic scrap prices too had been increasing sharply over the last five weeks, tracking export prices. H2 prices have increased by JPY 3,500/t for Tokyo Steel's Utsunomiya plant in Kanto region.
Tokyo Steel would pay JPY 25,000/t for H2 scrap delivered to Tahara and Okayama works and JPY 25,500/t to Utsunomiya (Kanto) from Thursday (20th Aug'20). Tokyo Steel may increase H2 prices further, especially for Utsunomiya works, following the Kanto tender today.
Tokyo Steel's bids for scrap purchase from 20th Aug '20
Price in JPY/t
Source: Tokyo Steel Report
Outlook - Japanese scrap export offers to Vietnam, Taiwan, and South Korea may increase in the coming days.
