On Tuesday, May 12, the monthly Kanto Tetsugen scrap export tender in Japan was closed with a sharp price increase, even exceeding the expectations of market participants. The ex-Japan export scrap increase has already started to be reflected in offers and deals to the major Asian buying-countries.
The average price at the recent Kanto Tetsugen tender was JPY 22,480/mt ($209/mt) FAS, JPY 1,824/mt ($17/mt) above last month’s auction, almost offsetting the decline seen then. The total volume sold in three lots was 23,000 mt. The price difference in three sales of 15,000 mt, 5,000 mt and 3,000 mt has been very small this time - $3/mt maximum.
The average FAS price corresponds to JPY 23,480/mt or $218/mt FOB. As SteelOrbis reported late last week, export deals for H2 scrap have been mostly signed at JPY 21,000-21,500/mt ($195-200/mt) FOB. According to recently disclosed information, one contract has been signed at JPY 21,500/mt ($200/mt) FOB to South Korea last week. After the tender today one of South Korean mills has announced a bid at JPY 23,000/mt ($214/mt) FOB. Most market participants believe that the export price for H2 from Japan is not below this level at the moment.
$1 = JPY 107.4
