Japan’s scrap rises due to Bangladesh demand

In the tender on January 16, a total of 15,000 tons of H2 scrap were completed at ¥53,081 per ton; This represents an increase of ¥2,061 from the previous month and marks the third consecutive month of price increases. Since the cargo will be sent to Bangladesh, the FOB price reached 54,081 Yen, equivalent to $370.42/ton.

Bangladeshi buyers returned to the maritime shipping market following the country's elections. Additionally, it was reported that steel mills offered offers for HMS 1/2 80:20 at approximately $420/t cfr.

This larger-than-expected increase in Kanto bidding could lead sellers to raise their target prices even further. Tokyo Steel announced a ¥2,000/ton increase in domestic collection prices at all its mills to comply with the Kanto tender. After this regulation, the price of H2 at the Utsunomiya facility will be 53,000 Yen/ton delivered to the facility.

Export negotiations are likely to slow down due to significant gains in the Japanese domestic market, as it takes time for steel producers to adjust to price increases. Vietnamese buyers had already purchased H2 before the Kanto auction at $402-403/t cfr, equivalent to about ¥52,500/t fob Japan.

The H2 fob Japan assessment was ¥51,600/t on January 15, while the monthly average for December was ¥51,075/t fob Japan.