On January 10, the Kanto Tetsugen monthly ferrous scrap export auction in Japan was closed with an increase, which may support import prices in Vietnam, which declined slightly early this week.
The average price at the latest tender increased by JPY 862/mt ($7.8/mt) compared to the tender in December to JPY 26,667/mt ($243/mt) FAS. The total volume sold in three lots was 26,100 mt. The FAS price corresponds to JPY 27,667/mt ($252.5/mt) FOB, sources reported.
Taking into account that Vietnam has been one of the major sales destinations for Japanese scrap recently, higher tender prices may prevent prices in Vietnam from declining in the near future. This week, sentiments in the Asian scrap market have worsened and sources have reported that offers from traders for ex-Japan H2 scrap have been at $285/mt CFR, down at least $5/mt compared to last week. Buyers in Vietnam have been cautious in purchases and, as a result, some small bookings have been heard even slightly below $285/mt CFR. Nominal prices for HMS I/II 80:20 scrap in Vietnam are unchanged at $300-305/mt CFR, with offers from the US at $315/mt CFR, but with “no taker,” a trader said.
$1 = JPY 109.642