[ferro-alloys.com]The highest winning bid for Japanese H2 grade ferrous scrap for export from Tokyo Bay by end April was Yen 34,010/mt ($306/mt) FAS for 7,000 mt, a jump of Yen 2,005/mt ($18/mt) from the highest winning bid in the previous monthly tender in February, tender organizer Kanto Tetsugen, a group of scrap distributors around Tokyo, said Tuesday.
The second winning bid was at the same price, for 5,200 mt, Kanto Tetsugen said.
The latest tender attracted 19 bids for a total 127,400 mt of scrap, with the bids averaging at Yen 32,975/mt FAS.
A Tokyo-based scrap trader said the winning bids equated to Yen 34,800-34,900/mt FOB, higher than the current export price level.
"The parcels are for shipping by end April, which is right before Japan's Golden Week holidays when the supply-demand balance of scrap is expected to become tighter for domestic mills stockpiling for holiday production; winners must be expecting prices before the holiday to be higher," he said.
Another trader in Tokyo was expecting domestic scrap demand to remain firm and said Japanese scrap offer prices have been rising.
"We wonder if overseas customers can continue accepting higher offers from Japan," another trader in Tokyo said.
He said the current offer level for H2 material to Vietnam was around $340-$345/mt CFR.
Japanese traders are currently paying around Yen 32,500-33,000/mt FAS to collect H2 material to be exported from the Tokyo Bay area, up around Yen 3,000/mt from a month ago, sources said.
（S&P Global Platts）