Japanese scrap prices in the export market have shown signs of a further rebound. Though the price in the recent Kanto Tetsugen export tender has posted a JPY 5,480/mt ($52/mt) drop compared to the previous month, its level is higher than the workable price level last week. Market sources are waiting for a further improvement after the Chinese New Year holiday.
On February 10, the monthly Kanto Tetsugen scrap export tender in Japan was closed at JPY 39,271/mt ($375/mt) FAS, down by JPY 5,480/mt ($52/mt) from last month's auction. The only lot of 15,000 mt of H2 scrap has been sold at this price level, while the targeted sales destination has not been confirmed by the time of publication. “Prices are increasing in Taiwan and Vietnam,” a Japanese trader said.
The Kanto tender price on FAS basis translates to JPY 40,271/mt ($384/mt) on FOB basis. This is far above the tradable level for Japanese H2 scrap reported by SteelOrbis last week at JPY 36,500-37,500/mt ($348-358/mt) FOB.
“The US and Japanese scrap exporters have stopped offering and are waiting for a further increase,” an Asian buyer said. The latest offers for H2 scrap from Japan have increased to $415-420/mt CFR Vietnam, which translates to about JPY 40,500/mt ($386/mt) FOB. South Korea’s import market has been silent, while the sellers’ price idea has gone up to JPY 39,500-40,000/mt ($378-382/mt) FOB minimum, according to sources.
As a result, the SteelOrbis reference price for ex-Japan H2 scrap has increased by JPY 3,000/mt ($29/mt) to JPY 39,500-40,500/mt ($378-386/mt) FOB.