Posted on 09 Oct 2020
The October monthly steel scrap tender price by the Japanese scrap dealers in the Kanto area around Tokyo has fallen by Yen 941 ($9/t) from the top winner in September, following the declines in spot export prices, according to an official from Kanto Tetsugen, the organizer of the tender, on October 9.
Among the winners, the top bid for the H2 grade scrap supplies was Yen 28,429/t FAS for 10,000 tonnes, and the second at Yen 28,384/t FAS for 10,500 tonnes, all to be shipped by the end of November from designated ports in Tokyo Bay, according to the organizer.
These were from a total of 21 bids for 176,200 tonnes at an average price of Yen 27,458/t FAS from both Kanto Tetsugen members and registered traders for the auction.
Kanto Tetsugen does not disclose the names of the winners but reliable sources in Tokyo reported hearing that the first bid was won by MM&Kenzai in Tokyo, a joint venture of Mitsui&Co. and MetalOne group, and the second by Nippon Steel Trading, a trading arm of Nippon Steel.
Kanto Tetsugen’s monthly tender results are always crucial, as it is of important reference for the Japanese scrap traders to estimate the scrap export market in the prompt month, Mysteel Global notes.
A Tokyo-based scrap trader had predicted the October winning bids to be lower on month because of lower scrap export prices.
However, “ the winning bids have not dropped as much as expected, as the winners are heard to use the secured tonnage to fulfil their earlier higher-priced bookings, so not fully and accurately reflecting the export prices at present,” he explained.
The top bid for domestic market is equivalent to about yen 29,200/t FOB, much higher than the export offerings by the Japanese traders at around Yen 27,000-27,500/t FOB, a second trader in Tokyo elaborated, while “no one will pay so high for new orders,” he emphasized.
Japan’s ferrous scrap export prices have started softening since mid-September, down by about $10-15/tby the end of September, Mysteel Global notes.
The Japanese shippers are paying around Yen 26,500/t FAS for H2 materials to be exported from Tokyo Bay ports such as Odaiba and Funabashi, down Yen 500/t on month or Yen 1,000-1,500/t lower from a new high of Yen 27,500-28,000/t FAS in the third week of September, market sources noted.
The Japanese mini-mills are paying around Yen 26,000-27,000/t for H2 grade scrap, unchanged on week but with a narrower range than the Yen 26,000-28,000/t in mid-September, sources confirmed.
Tokyo Steel Manufacturing, Japan’s top electric-arc-furnace producer, has remained its scrap buying prices unchanged since September 15, paying Yuan 26,000/t for H2 scrap delivered to its Utsunomiya works, north of Tokyo.
Written by Yoko Manabe, yoko.manabe@mysteel.com
Edited by Hongmei Li, li.hongmei@mysteel.com
Source:Mysteel Global
