The Japanese scrap dealer cooperative Kanto Tetsugen export tender continued its strong upward momentum in April, reaching its highest level since March 2023.
A total of 10,000t of H2 scrap was awarded at ¥54,329/t ($342/t) free alongside ship (fas) today, up by ¥4,208/t from March, Kanto Tetsugen said. This is equivalent to ¥55,329/t ($348.5/t) on an fob basis.
The tender cargo is likely to be shipped to Bangladesh again, market participants indicated, combined shipment with shindachi cargoes to optimize freight costs.
The seaborne market was surprised by the tender result as it was far above expectations. Prior to the tender, most overseas buyers were targeting below ¥52,000/t fob for H2, even as available offers remained limited.
In the domestic market, H2 prices were around ¥51,000-52,000/t, while dockside collection prices stood at ¥51,000-51,500/t fas. Traders are now watching how much Tokyo Steel will raise its domestic purchase prices in response to the sharply higher tender outcome.
Most Japanese traders expect the tender result to drive export offers higher, although it remains uncertain whether overseas buyers can match these levels. "Export negotiations will become increasingly difficult due to the widening price gap," a Japanese trader said.
The Argus daily assessment for H2 scrap fob Japan stood at ¥51,300/t on 8 April, compared with a March monthly average of ¥48,950/t fob.
