Insufficient demand has continued to weigh on ex-Japan H2 scrap prices. Following the Obon holidays in Japan, on August 19 the monthly Kanto Tetsugen scrap export tender has as expected been closed with a certain drop in prices.
In particular, the Kanto Tetsugen scrap export tender was closed for three lots totaling 13,000 mt of H2 scrap, with the first and the highest bid having been for 3,000 mt at JPY 47,183/mt ($425/mt) FAS. The second lot for 5,000 mt was closed at JPY 46,920/mt ($423) FAS, while the third lot for the same volume was sold at JPY 46,050/mt ($415/mt) FAS, SteelOrbis has learned from market sources. On balance, the average FAS price of H2 scrap in the recent tender has amounted to JPY 46,646/mt ($420) FAS, decreasing by JPY1,242/mt ($11/mt) over the past month and translating to JPY 47,646/mt ($429/mt) FOB. The destinations of shipments have not been confirmed by the time of publication.
In the meantime, the latest bid for ex-Japan H2 scrap from South Korea has been fixed at JPY 45,500/mt ($410/mt) FOB in early August, as SteelOrbis has reported earlier.
Meanwhile, the tradable level for H2 to Vietnam in the spot market has been heard at $470/mt CFR, down around $10/mt on week-on-week basis, but with higher bids voiced by customers.
On balance, SteelOrbis’ assessment for ex-Japan H2 scrap has remained unchanged, at JPY 45,500/mt ($410/mt) FOB.