Although demand for ex-Japan scrap from overseas customers has remained far from satisfactory, with export scrap prices having dropped within the past month, suppliers have been targeting higher levels recently, which has been confirmed by the results of the monthly Kanto Tetsugen scrap export tender closed today, September 9.
In particular, he Kanto Tetsugen scrap export tender was closed for four lots totalling 20,000 mt of H2 scrap at JPY 46,260/mt ($420/mt) FAS, down JPY 923/mt ($8.4/mt) from the highest bid fixed in the tender last month and down JPY 386/mt ($3.5/mt) from the average level of bids fixed previously. However, the prices were higher than expected by most market sources. According to market sources, all the lots are destined to be shipped to Vietnam. The FAS price in the Kanto auction translates to JPY 47,260/mt ($430/mt) FOB.
Meanwhile, as SteelOrbis reported earlier, by the beginning of September the tradable level for ex-Japan H2 scrap in the spot market had improved by JPY 500-1,000/mt ($4.5-9/mt) to JPY 45,000-46,000/mt ($409-418/mt) FOB, with the most recent bookings done to South Korea at the highest end of the abovementioned level.
Taking into account relatively high prices and firm demand in the local market in Japan and the higher-than-expected price level in the latest Kanto tender, suppliers will try to improve prices in the next deals to South Korea by the end of this week.