Japanese scrap trading cooperative Kanto Tetsugen's monthly scrap export auction concluded on Wednesday with prices reflecting a dereased in market sentiment.
In the latest tender, JFE Shoji secured 15,000 tons of H2 grade scrap for JPY 42,720 (USD 299) per ton FAS (FREE ALONGSIDE SHIP) or around USD 292 FOB Japan for export until October 31. This represents a decrease of JPY 4,212 (USD 30) compared to the previous tender held on August 9. The shipment of the September 11 tender will go to Bangladesh, following the same destination as the previous tender.
At the same time, Tokyo Steel recently adjusted its domestic scrap purchase prices, reducing them by JPY 1,000-1,500 (USD 7-10.5) per ton at its plants. This included a JPY 1,500 (USD 10.5) reduction in the purchase price for H2 scrap delivered to the Utsunomiya steel mill to JPY 41,500 (USD 290) as of September 12.
Scrap prices in Japan are expected to continue to decrease unless there is a significant change in global economic conditions or a substantial increase in buyer demand.
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