<article><p class="lead">Japanese scrap dealers' co-operative Kanto Tetsugen's export scrap tender concluded today for two orders, after two months of inactivity.</p><p>The export tender failed in November and December given the significant price gap between the domestic and seaborne markets. The monthly tender for H2 scrap concluded at an average price of ¥50,983/t ($442/t) fas, equivalent to ¥51,983/t fob. Two lots were confirmed during the tender with 5,000t at ¥51,010/t and 5,100t at ¥50,957/t.</p><p>Many market participants expect Vietnamese mills to have purchased the two lots, based on the quantity of each lot. Inventories across Vietnamese mills are low after slow scrap imports given sluggish steel demand in the Asian market. Domestic scrap supply was sufficient when many electric arc furnace mills operated at half capacity, but domestic scrap prices started to rise after 4 January as some mills were optimistic about steel demand after the lunar new year. Japanese traders received more inquiries from Vietnam from last week and concluded the price of the tender at around $505/t cfr Vietnam.</p><p>The January Kanto tender result will support export prices of Japanese H2. <i>Argus'</i> H2 fob Japan assessment fell by ¥7,000/t from the end of October to ¥47,500/t on tepid demand in the seaborne market. Overseas buyers kept the H2 bid price at ¥47,000-48,000/t fob since the middle of December but only a few transactions concluded as Japanese domestic H2 prices stood at ¥50,000-54,000/t. Suppliers are likely to target prices above ¥51,000/t to export H2 after today's tender. </p><p>A rebound in prices in the Turkish scrap market and firm Chinese steel futures will also boost confidence across suppliers in the global ferrous complex.</p></article>
