The bidding price for H2 grade scrap steel in the Kanto region of Japan falls in November, and market expectations become clearer

On November 12, 2024, the bidding A871 Type IV Grade 65(450) steel results for H2 grade scrap steel in the Kanto region were announced, and the successful bidding prices showed a monthly decrease in both Japanese yen and US dollar prices, reflecting the recent softening of price sentiment in the spot market for sea freight.

According to information provided by multiple trade A871 Type IV Grade 65(450) steel sources, the winning price for the 15000 tons of goods in this tender is 45180 yen/ton (294 US dollars/ton), a decrease of 500 yen/ton and 14 US dollars/ton respectively from the tender price in October. The winning bid goods are expected to be shipped to Vietnam, and market sources say that the conversion price is expected to be in the CFR Vietnam range of $338 to $340 per ton.

Compared with the sharp increase in the bidding price of H2 grade scrap steel in Kanto in October, the price in November fell within market expectations. A Japanese trader pointed out that the current freight cost for 15000 tons of H2 goods is approximately $40/ton. Considering that the FOB Japanese quotation for 5000 tons of H2 scrap steel last Friday (November 8th) was $288/ton, which was not accepted by the supplier, the bidding price seems reasonable.

However, some Vietnamese steel mills have stated that the bidding price is higher than the price level they can currently accept, and some manufacturers are still observing and waiting for further clarification of the price trend before making a decision A871 Type IV Grade 65(450) steel.

Against the backdrop of tight transportation capacity, rising freight rates, and moderate downstream demand, the sea freight quotes for H2 grade scrap steel have decreased this week. In addition, the FAS port price of H2 grade scrap steel in the domestic market remained stable on November 12th, at 42000 yen per ton, unchanged from the previous week.