Japan’s monthly scrap export tender for Kanto Tetsugen concluded today (February 12) with average bids down by JPY3,916/mt ($36/mt) from the prior month.
The tender was for a total scrap volume of 25,200mt, with the average winning bid at JPY22,751/mt ($216/mt) fas Tokyo Bay, down from 26,667/mt ($244/mt) in January.
The first winning bid for 5,000mt #2 HMS scrap was made by MMK company at JPY23,010/mt, down from the first winning bid recorded at JPY3,690/mt in the prior month.
The second winning bid for 15,000mt came from the Toyota Tsusho company at JPY22,700/mt fas.
The third winning bid was made by Houei, for 5,200mt at JPY22,650/mt fas Tokyo Bay.
Kanto tender bids in February fell by JPY3,916/mt ($35/mt) from the prior month, yet these levels were higher by JPY1,000-1,500/mt against the current FAS levels.
The market drop is expected to rise in the coming days, according to traders in Japan.
The average winning bids of JPY22,751/mt fas Tokyo Bay is equivalent to JPY23,750/mt ($216/mt) fob Tokyo Bay basis, higher than the current FAS levels by JPY1,000-1,500/mt.
The #2 HMS bid prices are higher by JPY1,751/mt from the price for delivered Utsunomiya plant on Feb 8.
The latest price cut of JPY1,000/mt at all of its plants was effective from February 8 and new bids for #2 HMS are at JPY21,000/mt del Utsunomiya plant in the Kanto region.
Bids for #2 HMS in Tahara, Kyushu, Okayama and Takamatsu were revised to JPY21,500/mt, JPY21,000/mt, JPY20,000/mt and JPY19,000/mt, respectively.
South Korean Hyundai Steel, the largest buyer of Japanese scrap, opened its tender with #2HMS at JPY23,000/mt fob Japan, last week.
Japanese scrap yards are awaiting Hyundai’s bid for this week, as an indicator on if Japan scrap prices have bottomed out.
A marginal rise in Turkish bulk scrap import prices and the conclusion of the Kanto February tender are the other markets Japanese traders are looking at, to push ferrous scrap prices higher in the coming days.
The equivalent fob prices are usually JPY1,000/mt higher than fas levels.
On weakened domestic scrap consumption, the volumes of ferrous scrap sold in the Kanto tender was higher than past four-month average of 20,000mt.