Amid the sharp price increases observed in the international scrap market, Japanese H2 scrap export prices are also showing a similar trend. Both local and export demand for Japanese scrap is strong, and, with the absence of Russia, “Both Japan and South Korea’s scrap prices will move up further. Hyundai and POSCO will need more Japanese scrap and it will affect the Japanese market,” a source commented. As SteelOrbis mentioned earlier, Taiwanese buyers have already started to look for Japanese shindachi scrap due to the anticipated disruptions and canceled orders for Russian pig iron. Under the current circumstances, the ex-Japan Kanto scrap tender has indicated a significant price increase today, March 9. After the Kanto tender, the main EAF-based steel producer in Japan, Tokyo Steel, has decided to increase its scrap procurement prices by JPY 3,000/mt ($26/mt) effective from March 10.
A total of 10,000 mt of H2 scrap has been sold at JPY 63,510/mt ($548/mt) FAS in the latest Kanto tender. In the Kanto tender held on February 2, the highest bid for this grade was at JPY 55,850/mt FAS. The highest bid from traders in the monthly Kansai-Cheorwon scrap export tender held on February 16 was at JPY 58,220/mt FAS. Accordingly, the price rise between two Kanto tenders is JPY 7,660/mt or $66/mt over the month, while it is also observed that as compared to the Kansai tender, the H2 export price from Japan has increased by JPY 4,930/mt ($43/mt). The buyers of scrap at the Kanto tender are believed to be South Korean, a SteelOrbis source commented.
The current FAS price in the Kanto tender corresponds to JPY 64,510/mt ($557/mt) FOB.
The SteelOrbis reference price for ex-Japan H2 scrap is now at JPY 56,500-64,500/mt ($487-556/mt) FOB, increasing by JPY 5,500/mt ($47/mt) on the upper end. The lower end of the reference price is expected to follow this trend after Hyundai and POSCO announce their bids for Japanese scrap.
$1 = JPY 115.78