The monthly Japanese scrap dealer co-operative Kanto Tetsugen's export tender registered a lower result in November driven by a softening seaborne market.
The tender for 15,000t of H2 scrap settled at ¥45,180/t fas today, marking a decline of ¥500/t from October. This set the fob price at an equivalent of ¥46,180/t, or $300/t. The outcome was higher than the initial expectation of ¥44,000-44,500/t fas.
Despite the result showing only a marginal decline, the dollar-equivalent price fell by $15/t to $300/t fob Japan because of the depreciation of the Japanese yen. The yen fell by 3.64pc from 9 October to ¥153.64:$1 today.
The tender cargo will be shipped to Vietnam, trade sources said. Export negotiations to Vietnam have been limited in recent weeks as sellers are holding back because of a vessel shortage. Participating in the Kanto tender is the optimal choice for Vietnamese buyers if they have restocking demand, a local trader said. The cfr price, including the quality premium for tender cargo, should be $340-345/t.
The Argus H2 fob Japan assessment was at ¥43,600/t on 11 November, and the October monthly average was ¥43,882/t fob Japan. The H2 collection price at Tokyo Steel's Utsunomiya plant was ¥41,500/t delivered to the mill. Traders expect Tokyo Steel to increase the collection price to align with the higher price in the seaborne market.
