Japanese scrap dealer co-operative Kanto Tetsugen's December export tender rose further, supported by a weaker yen and steady demand from Vietnam.
A total of 15,000t of H2 scrap was awarded at ¥45,688/t fas, up by ¥728/t from November. On an fob basis, the price works out to ¥46,688/t ($298.12/t). Despite the yen-denominated increase, the dollar-term fob price was unchanged from last month because of the softer yen.
The cargo will be shipped to Vietnam. Bangladeshi buying interest has been muted in recent months, while large-scale Vietnamese mills are restocking for January-February arrivals to cover domestic supply gaps during the holiday season.
The cfr price is estimated at $328-330/t, a level not widely accepted by other Vietnamese buyers. Smaller mills remain focused on domestic supply and are only targeting $318-322/t cfr for Japanese H2 this week in the face of pressure on domestic and seaborne steel prices.
Overseas demand outside Vietnam remained thin, with buyers deterred by high Japanese offers and a persistently sluggish seaborne steel market. The continued rise in Kanto tender results is expected to support domestic scrap prices and keep export negotiations limited.
The Argus assessment for H2 scrap fob Japan was ¥43,800/t on 9 December, compared with a monthly average of ¥44,070/t fob in November.
