Japanese steel scrap recycling firm Matec is inviting Turkish mills to its facilities in Japan, giving them the opportunity to investigate whether the company's material is suitable for Turkish electric arc furnace technology.
Turkish mills have already made contact with Matec to ask when they will begin exporting to Turkey, the company said. But the recycler has proposed for the mills to visit their yards first.
Matec can offer a variety of grades that meet international standards, it told Argus. But it understands that Turkish mills are not acquainted with Japanese scrap grades because there has been little interaction.
The most commonly found grade of scrap in Japan is H2, which can vary greatly in terms of proportion of impurities and therefore quality. Some H2 scrap will be suitable for Turkish mills, a Japanese scrap trading company said. And Matec also offers bonus grade, which meets international standards, according to the scrap trader.
Japanese recyclers offer one quality of H2 grade to export markets at ¥26,500/t ($219/t) fob Japan, and bonus grade at ¥28,500/t ($235/t) fob Japan, according to a Japanese trader. With freight for direct shipment of 30,000t on a Handysize vessel estimated by market participants between $40-50/t, these prices become very competitive with other global scrap sellers' prices in Turkey.
Matec said it would "prefer deals on a fob basis to a cfr or other delivered basis". And, as previously reported by Argus, Matec's preferable lot is 20,000-30,000t.
Two Turkish mills are confirmed to have interest in sourcing scrap from Japan.
ar/kv
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