Japanese scrap export prices dip before Kanto tender

Posted on 10 March 2021

Japanese scrap offer prices are softening in Vietnam. However, market participants are awaiting the outcome of a Japanese scrap export tender on Wednesday for clearer market direction, Kallanish notes.

Offers for Japanese H2 grade scrap slipped to $455-460/tonne cfr Vietnam on 9 March, down from $465/t cfr previously. The last booking in Vietnam transpired at $453/t cfr on 26 February. "Offers are indicated lower, but most want to wait for the Kanto Tetsugen [Japanese scrap export] tender results," an importer says.

Japanese scrap has weakened due to the drop in Chinese futures and Turkey’s withdrawal from the import market, a Vietnamese scrap trader says. But he foresees the current softening as temporary and expects a rebound after two weeks. It is very quiet now because most participants are waiting for the results of the Kanto tender, another source says. "But it seems that the market has calmed down," he adds.

The Japanese scrap market in South Korea has not seen any movement this week, a Seoul-based trader says. He expects Japanese scrap suppliers to resume trading activities after the Kanto tender.

Source : Kallanish