[Ferro-Alloys.com]

 

Japanese scrap dealer co-operative Kanto Tetsugen's export tender price for July has continued to post gains. But market participants were not optimistic that the higher value will boost sentiment in the seaborne market given subdued steel demand.

 

A cargo of 5,500t of H2 was concluded in the export tender at ¥49,740/t fas on 11 July, marking the second month of increases. The price was up by ¥1,573/t from the previous month, with the fob price equivalent to ¥50,740/t or $360.75/t. The specific destination for the cargo in the tender was unclear, although some market participants said it will possibly be shipped to South Korea or Vietnam to fulfil previously sold positions.

 

The tender result slightly exceeded initial expectations, which ranged between ¥49,000-49,500/t fas, but was still in a reasonable range if the buyer needs the volume, a Japanese trader said.

 

The latest Argus H2 fob Japan assessment was at ¥49,700/t fob, with the June monthly average at ¥49,085/t fob Japan. Overseas buyers over the past week refrained from purchasing and lowered their price ideas to around ¥49,000/t fob on uncertainty in the steel market.

 

Japanese scrap export negotiations are expected to slow further because of firm domestic prices and a strengthening yen. Following the Kanto tender Tokyo Steel announced an increase in domestic collection prices to attract more scrap inflows, raising the H2 price at its Utsunomiya plant by ¥1,500/t to ¥50,000/t delivered to the steel mill.