Price for ex-Japan scrap have stabilized at the last week level after the Kanto Tetsugen auction results on March 10. Nevertheless, some slowdown is seen for CFR prices in US dollars this week amid the weaker Japanese currency. Higher grade scrap prices from Japan have declined due to lower demand from China.
On March 10, the monthly Kanto Tetsugen scrap export tender in Japan was closed at JPY 42,976/mt ($395/mt) FAS, up by JPY 3,705/mt ($34/mt) compared to last month's auction, but in line with the last week’s tradable price in the export market.
Three lots of 15,400 mt of H2 scrap have been booked in total, with two of them for 5,200 mt each trading at JPY 43,060/mt FAS, while one for 5,000 mt changed hands at JPY 42,800/mt FAS.
The Kanto tender average price on FAS basis translates to JPY 43,976/mt ($404/mt) FOB. This level is in line with the SteelOrbis market price assessment at JPY 43,500-44,500/mt FOB for last week. Nevertheless, in US dollars export prices have lost $5-6/mt since last week, coming to $400-409/mt FOB due to exchange rate fluctuations.
As a result, the latest offers for Japanese H2 scrap have been reported to Vietnam at $455-460/mt CFR, down from at least $465/mt CFR late last week. “The market has already reached its peak,” a trader from Japan said.
Prices for higher grade HS scrap from Japan have moved down in reaction to slower demand from China and lower bids. At the moment, the tradable level for HS for Chinese customers is $490-495/mt CFR, versus $500-505/mt CFR late last week. Offers are at $500/mt CFR, but they are "not workable anymore."
In addition, at least 30,000 mt of HS scrap were sold to S. Korea at JPY 48,500/mt ($446/mt) FOB last week.