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Japan's October ferrous scrap Kanto Tetsugen monthly export tender price dipped because of a weaker domestic market and declining demand from overseas buyers.
There were two 5,000t cargoes that settled at ¥50,120/t ($343.06/t) and ¥49,610/t, respectively. The average price was ¥49,865/t fas, down by ¥1,175/t from September. The fob price was equivalent to ¥50,865/t.
The lower export tender price was within market expectations as the Japanese domestic scrap price fell after the September tender. Steel products manufacturer Tokyo Steel's domestic collection price in major plants fell by around ¥1,500/t from mid-September to early October in a bid to narrow the price gap with the seaborne market.
Limited overseas scrap demand will continue to weigh on export prices, trade sources said.
"Although the tender result is about $10/t higher than the tradeable level in these two weeks, everybody knows that not many buyers are willing to chase the higher price," another Japanese trader said.
The destination of the two cargoes was not disclosed, but some market participants expect them to be shipped to Vietnam based on the tonnages. "But I don't think these are booked by mill buyers directly because their price idea is far lower than the result," a Japanese trader said. "[It] might be bought by traders to fulfil long term contracts."
Bangladesh buyers did not secure the tender cargo as deep-sea bulk cargoes remained the cheaper option. The tender result is equivalent to above $420/t cfr for H2, while a fresh deal for a deep-sea cargo was concluded at around $415/t cfr for HMS 1/2 80:20 this week. argusmedia.com
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- [Editor:kangmingfei]
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