The Kanto Tetsugen cooperative, which brings together over 80 scrap dealers in Japan’s Tokyo area, concluded its July auction of H2 scrap on Wednesday at ¥28,060 ($259) per tonne fas Tokyo Bay, down ¥907 per tonne compared with its previous auction.
Two successive bidders each secured 10,000 tonnes of H2 scrap at that price.
The lower auction price had been expected by key market participants, who pointed out that Japan’s domestic scrap market was extremely depressed due to the weak downstream steel market.
This has led many Japanese producers of billet to start channeling their cargoes to Southeast Asia
instead of the domestic market.