Tokyo — The highest winning bid for Japanese H2 grade ferrous scrap for export from Tokyo Bay by end July was for 5,200 mt at Yen 29,150/mt ($268/mt) FAS, down Yen 1,950/mt ($18/mt) from the highest winning bid in the previous monthly tender in May, organizer Kanto Tetsugen, a group of scrap distributors around Tokyo, said Tuesday.
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The second winning bid was for 5,000 mt at Yen 29,150/mt FAS, the third for 5,000 mt at Yen 29,020/mt FAS and the fourth for 5,100 mt at Yen 28,550/mt FAS. On average, the winning bids averaged Yen 28,967/mt FAS, down Yen 1,343/mt from the average of May's winning bids.
The tender held Tuesday attracted 17 bids for a total 103,800 mt of scrap, with the bids averaging at Yen 28,147/mt FAS.
"The supply-demand balance of scrap in Kanto has softened; some mini-mills are limiting their acceptance of scrap arrivals and we expect Japanese scrap prices to fall further," a Kanto Tetsugen official said.
A Tokyo-based scrap trader said the winning bids Tuesday were close to the prices that traders were currently paying to collect scrap for export. "These parcels may be used to fill winners' backlog orders, which were booked at around Yen 30,000/mt FOB," he said. Japanese traders are currently paying around Yen 28,500-29,000/mt FAS to collect H2 material to be exported from Tokyo Bay area, traders in Tokyo said.
S&P Global Platts last assessed Japanese H2 grade ferrous scrap loading from Tokyo Bay at Yen 30,000/mt FOB last Tuesday, unchanged from the week before.
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--Edited by Wendy Wells, firstname.lastname@example.org