Japan: Bids in Kanto Scrap Export Tender Remain Largely Stable

Kanto Tetsugen'- Japan's monthly ferrous scrap export tender for Mar'20 was concluded today (11th Mar'20) in the Kanto region.

A total of 30,000 MT of Japanese H2 scrap was awarded at an average price of JPY 22,655/MT (USD 217), FAS, as compared to JPY 22,751/MT (USD 218) in Feb'20. In Mar'20 tender, average bid was marginally down by JPY 96 (USD 1) against Feb'20.

As per credible sources report to SteelMint, bids in Kanto tender are slightly higher than prevailing domestic prices. Tokyo Steel's scrap purchase price for H2 is at JPY 19,500 (USD 187) at it's Utsunomiya works in Kanto. It would be interesting to see if domestic scrap purchase prices in Japan will witness increase after Kanto Tetsugen tender results.

Monthly around 25,000-30,000 MT of H2 scrap is auctioned through Kanto tender. Notably, the FoB prices for the same are higher by around USD 9-10/MT than FAS prices.

JPY is trading at 104.5 against USD versus 109.89 a month back.

Last week, Hyundai Steel booked Japanese H2 scrap at JPY 23,000/MT FoB (USD 220).