Posted on 12 Sep 2022
The ferrous scrap monthly Kanto Tetsugen export tender rebounded in September after falling for four consecutive months, driven by rising overseas demand throughout August.
There was only one lot of 15,000t of H2 scrap concluded at ¥51,040/t ($356.50/t) fas in the tender on 9 September, up by ¥8,979/t from August. The deal was equivalent to ¥52,040/t fob and will ship to Bangladesh.
The upward trend in the Japanese scrap export market started in early August, with buyers from Vietnam and Taiwan entering the market to replenish stocks as Japanese scrap had a price advantage compared to scrap from other origins. South Korean buyers joined the market in mid-August and put forth aggressive buying prices, boosting market sentiment and pushing buyers from other markets away.
H2 export offers were at around ¥50,500-51,000/t fob before the tender and there was no interest from buyers in the previous week. Market sentiment further deteriorated this week with two major South Korean mills announcing they would halt production because of damage caused by Typhoon Hinnamnor.
"This [tender] price is incredibly high. The market has turned weak [since] last week but the tender result is still $14/t higher than the export price done at end of August," a Japanese trader said. "Although the tender is higher than expected, I don't think other overseas buyers will treat it as a bullish signal," he added.
There was high demand among south Asian buyers compared to Southeast Asian buyers in the past two months, although buying appetite has waned since end-August after mills secured a flurry of deep-sea bulk cargos from the US and Europe.
Source:Argus Media
