FLASH: Japan scrap export prices rise in Kanto auction

On Friday morning prior to the tender, industry daily Tekko Shimbun commented that most in the market were expecting the winning bid price to be around Yen 50,000/t. "Rising export prices in US dollar terms and a weaker yen are cited as strong factors," it had observed.

The auction attracted 14 bids – the same as last month's – though the traders had sought a combined 130,400 tonnes, higher by a large 30,000 tonnes from last month.

The dealer grouping never identifies the trader submitting the winning bid but Mysteel Global understands it was again Toyota Motor's scrap trading arm, Toyota Tsusho, which bought the scrap to supply its regular customer, Bangladesh Steel Re-Rolling Mills, as it did last month and the month before that.

The tonnage allotted by the Kanto dealers was again 20,000 tonnes, the same as last month.

On Thursday afternoon in what one market pundit described as a "precautionary price hike" ahead of Friday's tender, domestic scrap-price setter Tokyo Steel Manufacturing had lifted scrap buying prices for all grades at all plants and scrap yards nationwide by Yen 500-1,000/t effective from 9 October arrivals.

This had taken the mini-mill's H2 buying prices at its Utsunomiya works in the Upper Kanto region and at its Tokyo Bay Satellite Yard to Yen 49,000/t.

A further rise was anticipated after the tender results were announced.

Written by Russ McCulloch, russ.mcculloch@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com