Posted on 13 Jan 2022
The Kanto Tetsugen Cooperative Association has resumed its monthly export auction for Japanese H2 grade scrap from Tokyo Bay after a lapse of two months, Kallanish notes.
In yesterday’s tender, the Kanto Tetsugen Cooperative Association awarded a 5,000-tonne parcel to Daisen Sangyo Corp at JPY 51,010/tonne ($442/t) fas and another 5,100t lot to Nippon Steel Trading at JPY 50,957/t. The average award price was JPY 50,983/t fas or around JPY 51,983/t fob. The association announced that 15 companies took part in the 12 January tender and they bid in total for 124,800t.
The last two Kanto tenders which were held in November and December were not awarded because Japanese scrap suppliers were unwilling to concede to lower bids from exporters. The domestic scrap market in Japan has been firmer than regional scrap markets.
Notably, the Japanese domestic scrap market has been falling in recent weeks. Tokyo Steel has been lowering scrap procurement prices at its Utsunomiya steelworks and is currently paying JPY 53,000/t for H2 grade trucked to the steelworks, effective 13 January. Prices peaked at JPY 56,000/t at end-October. The mill has lowered prices by a total of JPY 2,000 since 9 December.
Source:Kallanish
