Posted on 10 Nov 2023
Japan's monthly scrap dealer co-operative Kanto Tetsugen export tender has held largely stable for November on continued support from the export market.
A total of 18,000t of H2 scrap traded in the 9 November export tender at an average of ¥50,238/t fas, a slight increase of ¥2/t from the previous month. The fob price was equivalent to ¥51,238/t or $339.51/t.
The first lot, comprising 15,000t, was sold at ¥50,386/t fas and purchased by a Vietnamese steel mill. The second 3,000t lot traded at ¥50,000/t fas, likely bought by a trading company taking a long position. A Japanese trading house indicated it also received a similar price idea this week from a Bangladeshi buyer.
The Japanese scrap export market faced weakness in October as many overseas buyers held back, resulting in a ¥2,000/t drop in the Argus H2 fob Japan assessment to ¥49,200/t fob. But the export price gained support in November as more buyers showed interest at the current level. Scrap offers from other origins also increased with the recovering global scrap market. Japanese trading houses are expected to maintain firm offer levels following the tender.
South Korean mills have been absent from the seaborne market because of a downwards trend in their domestic scrap market since the end of October. Taiwanese and Vietnamese mills consider Japanese scrap when prices are attractive.
The first lot traded in the latest Kanto tender was equivalent to around $375/t cfr Vietnam. It was deemed a reasonable price by market participants given the premium quality of the tender cargo. US deep-sea bulk HMS 1/2 80:20 had been offered higher at $400/t cfr Vietnam.
The Argus H2 fob Japan assessment was ¥49,600/t on 8 November, with the October monthly average at ¥50,073/t fob Japan.
Source:Argus Media
