TOKYO Prices for Japanese scrap, both for domestic consumption and export, continued to march higher this past week even as U.S. scrap prices fell.
The latest monthly tender by Tokyo-area scrap dealers saw the average winning bid for October deliveries of H2-grade scrap edge up by 265 yen ($3) per tonne to 32,935 yen ($330).
This marks the third monthly increase in Japans scrap export prices, which together have clawed back more than half of the 12.5-percent drop since Marchs tender.
The rise came on the back of strong demand from Southeast Asia and South Korea, with some 20,000 tonnes bid for successfully.
The continued upward momentum in Japanese scrap prices is in contrast to U.S. prices, with quotes for an 80-20 mix of No. 1 and No. 2 heavy melting scrap to Taiwan down $5 this past week to $362 to $363 per tonne c.f.r., according to market sources.
Meanwhile, domestic Japanese scrap prices are on the rise, with the national average for H2 material at 32,729 yen ($328) per tonne, up 1.3 percent from 32,298 yen ($324) a week earlier, according to the Japan Ferrous Raw Materials Association.
This means that domestic scrap prices have now risen by some $32 per tonne since the middle of last month following four months of declines.
A version of this article was first published by AMM sister publication Steel First.