Japanese scrap prices rise in export tender -- just
That the winning price was higher on month had surprised some market watchers who had tipped a further dip after last month's decline, but others in the market were sceptical that the increase would stick.
"The winning bids were too high," said a Tokyo-based scrap trader Friday. "Nobody else would pay that high price, so prices during actual export negotiations will be much lower," he warned.
In the November 9 tender, the dealers awarded 15,000 tonnes to the winning bid, believed to have been placed by Itochu Metals Corporation, a Tokyo-based specialized metals trader, and another 3,000 tonnes to the runner-up bid of Yen 50,000/t FAS, thought to have been tabled by Okaya & Co, a metal trader based in Nagoya. The larger parcel will sail to Vietnam, the Kanto Tetsugen said, but the destination for the second is unknown.
The tender attracted a total of 16 bids from 15 companies, bidding for a total of 95,850 tonnes, down 1,800 tonnes (1.8%) from the month before. However, the dealers on Thursday had agreed to accept two top bids for a total of 18,000 tonnes, whereas in previous auctions the dealers had limited their tonnage to 15,000 tonnes or less, with that in July for August shipment, for example, being a paltry 5,500 tonnes, as Mysteel Global reported.
"We can expect that the amount of recycled scrap will increase to a certain extent in December, while (Japanese) electric-arc-furnace steelmakers usually limit or stop receiving cargos from mid-December to late December," Kanto Tetsugen chairman Koji Minami is quoted as saying to explain the higher tonnage.
"Consequently, the association anticipated that the scrap supply-demand situation will be more relaxed toward the year-end and decided to accept the top two bids if the price gap between the first bid and the second bid was not wide," he said.
Written by Russ McCulloch, russ.mcculloch@mysteel.com
Edited by Vivian Yang, yangzhenqi@mysteel.com
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