An upward trend has been seen in Japanese scrap export prices this week as, even though demand has failed to improve significantly, exporters have managed to push prices up in the latest Kanto tender. Also, South Korean steelmaker POSCO has announced higher bids today, signaling that buyers have started to try to attract some volumes after weeks of slow buying.
The Kanto tender average price was at JPY 48,167/mt ($345.5/mt) FAS, increasing by JPY 1,994/mt, with dollar-based quotations increasing only slightly by $4.5/mt since last month, given the appreciation of the Japanese currency recently.
A total of 15,000 mt of scrap were booked in the tender (the tonnage is slightly lower than the 20,500 mt traded in the auction last month) with the cargo to be delivered to Bangladesh, according to market sources. Bangladesh has remained the major sales destination for traders, who take part in the Kanto tender, as customers in South Korea and Taiwan have not been ready for these higher prices, at least so far.
The Kanto tender FAS price translates to JPY 49,167/mt ($353/mt) FOB.
Also, today, POSCO has announced its new bids for ex-Japan HS scrap at JPY 56,000/mt CFR, JPY 1,000/mt above the price from the same producer on June 2. This price level translates to around JPY 53,500/mt on FOB basis and corresponds to the lowest Tokyo Bay prices, which are at JPY 52,500-54,000/mt FAS this week.
As of today June 9, Tokyo Bay FAS-based prices for H2 grade scrap are at JPY 47,000-49,000/mt ($337-351/mt), with the upper end of the range rising by JPY 1,500/mt or $9/mt over the past week. This new level signals JPY 48,000-50,000/mt ($344-359/mt) FOB for this grade.
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have settled at JPY 48,800-49,200/mt ($350-353/mt) FOB, up by JPY 800/mt on the lower and JPY 900/mt on the upper end of the range, while the dollar-based range added $5/mt. The lower end of the range corresponds to the recent offers from Japan to Vietnam and Taiwan.
$1 = JPY 139.41