Posted on 11 Aug 2022
Japan's August ferrous scrap Kanto Tetsugen export tender settled lower compared with the previous month on sluggish market sentiment, although it rebounded from lows at the end of July because of rising seaborne prices in recent weeks.
The August tender settled at an average of ¥42,061/t ($311.56/t) fas for H2 grade scrap, equivalent to ¥43,061/t fob. This was lower by ¥2,493/t from July but rose from an export price of around ¥38,500/t fob at the start of August.
There were two lots concluded in the August tender at 15,000t for ¥42,071/t and 5,000t for ¥42,030/t. The first lot will be shipped to Bangladesh and the second to Vietnam, market participants said, as buyers from these two markets have shown consistent buying interest since the end of July.
The tender result was higher than expected, according to participants, which will likely boost market sentiment and lift sellers' target price. "I thought the result would be around ¥40,000/t fas but it turns out to be ¥2,000/t higher," a Japanese trader said.
The Japanese H2 export price remained in a downward trend after July's Kanto tender, with Argus' H2 fob Japan price down by ¥6,100/t from 12 July to ¥38,500/t fob on 4 August.
Japanese suppliers sold several H2 cargoes at ¥38,500-39,000/t fob during 27 July-3 August, opting to hold back after receiving more enquiries from overseas buyers and more positive signals emerging in the international market.
Argus' HMS 1/2 80:20 cfr Turkey assessment rose from $350/t on 1 August to $392/t on 9 August, injecting a fresh wave of optimism for international scrap sellers.
Source:Argus Media
