Following the recent Kanto Tetsugen scrap export tender, market participants expect that prices for Japanese scrap in Southeast Asia may stabilize or rebound slightly in the near future. The tender price has been relatively stable compared to last month’s auction, but higher than expected by the market, taking into account weaker prices in the local scrap market in Japan.
The average price at the latest Kanto Tetsugen tender, closed on March 11, was JPY 22,655/mt ($216.5/mt) FAS, down JPY 96/mt ($0.9/mt) compared to the auction in February. The total volume sold in two lots was 30,000 mt.
The FAS price corresponds to JPY 23,655/mt ($226/mt) FOB, which is higher than JPY 23,000-23,500/mt ($220-225/mt) FOB seen as the workable level in the market recently, as sources told SteelOrbis. “The highest bid is far higher than the second so may not be regarded as the market price,” a Japanese scrap exporter said. The one lot of 15,000 mt of Japanese H2 scrap has been sold at JPY 22,970/mt ($219.6/mt) FAS, while the second parcel has been sold at JPY 22,340/mt ($213.6/mt) FAS, SteelOrbis has learned.
So, as most sources believe, the ex-Japan H2 scrap price level for Southeast Asia should be at JPY 23,300/mt ($223/mt) FOB on average.
