Japan's Kanto Tetsugen Scrap Export Tender for Jan'20 Fetches Bid Higher by USD 8/MT M-o-M

Kanto Tetsugen'- Japan's monthly ferrous scrap export tender for Jan'20 was concluded today (10th Jan'20) in the Kanto region, SteelMint learned from market participants, with a third consecutive hike being observed in the winning bids since Nov'19.

A total of 26,100 MT of Japanese H2 scrap was awarded at an average price of JPY 26,667 /MT (USD 243), FAS, as compared to JPY 25,804/MT (USD 237) in Dec'19, witnessing a significant rise by JPY 863/MT (USD 8) in the winning bids on a monthly basis. Monthly around 25,000-30,000 MT of H2 scrap is auctioned through this tender. Notably, the FoB prices for the same are higher by around USD 9-10/MT than FAS prices.

A total of around 26,100 MT of the material was bid this month as against the only 23,000 MT was bid in the previous month.

What could be the outcome of it in Japanese domestic scrap market ?

Just after the Kanto tender result concluded in Dec'19, Japan's Tokyo Steel hiked its scrap purchase price across all its works by JPY 500-1000/MT, although the bids have remained unchanged since the last 4 weeks. In Dec'19, Tokyo Steel raised H2 scrap purchase price at Utsunomiya works by JPY JPY 500/MT to JPY 25000/MT DAP (USD 228).

However, now after a further rise in Kanto results, the export offers are expected to reflect in the domestic scrap prices also, and further price hikes by Tokyo Steel and other mills are likely in the coming days.