The latest Kanto Tetsugen monthly scrap export tender showed a decline in awarded prices, signaling market adjustments.
Tender Details
- Awarded Party: Toyota Tsusho Material
- Quantity: 15,000 tonnes of H2-grade scrap
- Price:
- JPY 42,739/tonne ($280/t) fas
- Approximately $295/t fob Japan
- Shipping Deadline: By 31 January
The awarded price was JPY 2,441/tonne lower compared to the previous tender held on 12 November. A total of 15 bids were submitted, amounting to 97,700 tonnes of scrap.
Price Breakdown
- The award price in USD is $13/tonne lower than last month’s price of $293/t fas.
- The cargo is expected to be shipped to Bangladesh, with an estimated delivered price of $355/t cfr for H2-grade scrap.
Domestic Scrap Pricing Updates
Tokyo Steel maintained its scrap procurement prices across most facilities, except for the Kyushu Steelworks, where:
- H2 purchase prices were reduced by JPY 1,000/tonne to JPY 40,500/tonne, effective 12 December.
- The Utsunomiya Steelworks kept its H2 purchase price steady at JPY 41,500/tonne.
Market Insights
The drop in Kanto tender prices reflects fluctuating demand and increasing competition in the regional scrap market. While the lower prices may benefit buyers in countries like Bangladesh, domestic price adjustments by Tokyo Steel indicate a cautious approach to balancing supply and demand.
