Japan: Kansai Scrap Export Tender Fetches Bid Down By USD 9
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Japan's Kansai Iron and Steel Federation, an association of scrap dealers around the Osaka region concluded its 2nd tender in Oct'19, yesterday, (15th Oct'19) in which the winning bid by "JFE Shoji Trade" was awarded a total 5,200 MT of Japanese H2 at an average of JPY 22,050/MT (USD 203), FAS. The current bid is JPY 980/MT (USD 9) lower than the previous tender result on 3rd Oct'19 earlier this month.
The loading period for the cargo is reported to be from November 11th to December 20th 2019. For the 2nd month in a row, the federation had decided to put 2 tenders in a month of around 5000 MT each, instead of a single tender in a month normally. The increased exports since last month can be attributed to the ongoing supply-demand unbalance in the domestic market
In the previous tender concluded in the 1st week of Oct'19, the winning bid had observed only a marginal drop by JPY 240/MT M-o-M, standing at JPY 23,030/MT (USD 211) FAS, however, a further drop of JPY 980/MT has been observed in the 2nd tender's result.
Notably, the Kansai bid is slightly lower than the Kanto tender's winning bid of JPY 22,293/MT (USD 205) observed last week. Amid a continued drop in export offers of Japanese scrap, South Korea's Hyundai steel had lowered its purchase bid by JPY 2000/MT (USD 18) last week, following the sharp drop in the Japanese domestic market.
