The Japanese scrap dealer cooperative Kanto Tetsugen's September export tender closed slightly higher, even as overall overseas buying interest stayed subdued.
A total of 15,000t of H2 scrap was awarded at ¥41,970/t fas, up by ¥82/t from August. On an fob basis, this equates to ¥42,970/t, or $291.54/t. The outcome remained broadly in line with prevailing market levels, given the quality premium typically attached to tender cargoes.
The cargo was heard awarded to a Bangladeshi mill. Despite weaker seasonal demand during the monsoons, Bangladeshi buyers continued sourcing both Japanese scrap and deep-sea bulk scrap because of insufficient domestic supply.
Japanese exporters have been facing sluggish demand in the seaborne market in recent weeks. Uncompetitive export offers and stagnant steel sales limited buying interest for Japanese scrap, while sellers held their prices firm amid higher freight costs and steady domestic collection rates.
Looking ahead, sellers anticipate a gradual recovery in overseas demand once the rainy season ends and steel consumption moves into its year-end peak. Vietnamese mills indicated a buying idea of $315-318/t cfr for H2.
The Argus assessment for H2 fob Japan stood at ¥41,600/t on 9 September, with the August monthly average at ¥41,952/t fob.
