Posted on 12 May 2022
A recent Japanese monthly scrap export tender did not close because the scrap suppliers deemed the bidding price too low, Kallanish notes.
The Kanto Tetsugen Cooperative Association chose to reject the highest bid of JPY 58,100/tonne ($448/t) fas for Japanese H2 grade scrap on Wednesday. Last month, it awarded a 10,000-tonne parcel in its 12 April tender at JPY 67,010/t fas, or JPY 8,910/t ($69/t) higher.
Meanwhile, Japan’s Tokyo Steel lowered its procurement prices by JPY 1,500/t at each of its four steelworks effective 12 May. The company will pay JPY 64,000/t for H2 grade scrap trucked to its Utsunomiya steelworks, compared to the recent peak price of JPY 66,000/t during 13 April-6 May. Its purchase price for H2 scrap at its steelworks at Tahara, Okayama and Kyushu is JPY 63,000/t.
There is no Japanese scrap reference price in South Korea since the week ending 15 April, South Korean traders say. They expect Hyundai Steel to refrain from buying Japanese scrap this week, which is the fifth consecutive week that the mill has stayed away from the Japanese scrap market. “The price for H2 scrap has been higher compared to HMS scrap,” a Seoul-based trader says. He estimates the current price of H2 would be $485/t fob at the very least.
Source:Kallanish
