Posted on 10 Feb 2022
A Japanese monthly scrap export tender has settled nearly 10% higher, Kallanish notes. This is in tandem with rising international scrap prices
In Wednesday's tender, the Kanto Tetsugen Cooperative Association awarded two 5,000-tonne parcels to Daisen Sangyo Corp at JPY 55,850/tonne ($483/t) and JPY 55,840/t. These prices are for H2 grade and fas basis. The average award price of JPY 55,845/t fas or around JPY 56,845/t ($493/t) fob was JPY 4,862/t higher than last month's tender. The association announced that 15 companies took part in the 9 February tender and they bid in total for 133,150t.
The cargoes are destined for Vietnam, Vietnamese trading sources say. One believes that the likely buyer is a Japanese-Vietnamese jv EAF mill located in southern Vietnam. He estimates that the delivered price should be at least $550/t cfr. But others are less certain on which Vietnamese mill booked the tendered cargoes.
Meanwhile, Japan's Tokyo Steel has taken the cue from the export tender and will raise its domestic scrap purchase prices. The leading Japanese EAF operator will hike by JPY 2,000/t to JPY 55,000/t for H2 grade scrap trucked to its Utsunomiya steelworks, effective 10 February. It was paying JPY 53,000/t during 13 January – 9 February.
Source:Kallanish
