Kanto Tetsugen, the scrap trading cooperative in Japan, saw a decrease in its monthly export tender in November due to the softening of the seaborne market. The tender for 15,000 tons of H2 scrap was concluded at JPY 45,180/t (USD 294), representing a decrease of 500 Yen/t from October.
Initial expectations were in the range of JPY 44,000-44,500/t, while the results were above these estimates. Due to the depreciation of the Japanese yen, the price in dollar terms decreased by USD15/t to USD300/t. Trade sources indicated that the tender cargo will be sent to Vietnam. However, export talks to Vietnam have been limited in recent weeks as sellers have withdrawn due to a shortage of vessels.
A local trader said that participating in the Kanto tender is the most suitable option for Vietnamese buyers. The CRF price including quality premium for tender cargo is expected to be USD340-345/t.The Japanese H2 FOB price was recorded at JPY 43,600/t (USD 283) on November 11, compared to the October average of JPY 43,882/t (USD 285). The H2 collection price at Tokyo Steel's Utsunomiya plant was at JPY 41,500/t (USD 269). Traders expect Tokyo Steel to raise its gathering price to adjust to higher prices in overseas markets.
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