Japan: Kansai Scrap Export Tender Fetches Bid Higher by USD 5/MT

In line with an increase of USD 12/MT in Kanto Tetsugen in Japan, Kansai scrap tender for May'18 has also fetched bids higher by JPY 500/MT (USD 5) M-o-M.

Kansai Tetsugen is an association of scrap dealers around Osaka region in Japan. They conduct scrap export tender through which usually around 5,000-10,000 MT H2 scrap gets auctioned in Japan. For May'18, Kansai scrap tender has conducted today on 14 May'18.

According to sources, in the auction conducted for May'18, JFE Steel Corporation was awarded as the H1 bidder for around 5000 MT H2 scrap with the winning bid fetched at JPY 33,500/MT (USD 306) on FAS basis. It is to be noted that FoB prices for the same are higher by around USD 9-10/MT than FAS (free alongside ship) prices.

Kansai tender concluded earlier to this was on 16th Apr'18, in which the bids were recorded at JPY 33,000/MT, FAS for 5000 MT of H2 scrap. Thus on monthly premises, Kansai bids for May'18 have increased by JPY 500/MT (USD 5).

The winning bid fetched in Kansai tender was recorded slightly higher than the current market prices in Japan. It seems that on witnessing the uplift in the bids fetched for H2, Japanese domestic scrap market prices are expected to rise further.

Kanto Tetsugen, Japan's largest monthly ferrous scrap export tender concluded on 10th May in Kanto region for this month. The average bids for May'18 recorded at JPY 34,245/MT (USD 313), FAS which have increased by JPY 1,266/MT (USD 12) on M-o-M basis as against the average bids at JPY 32,979/MT in Apr'18.

Domestic scrap prices in Japan on an uptrend - According to price indices reported by Japan Iron and Steel Association, domestic scrap prices have increased successively for the second week in Japan. The average price index for H2 scrap increased to around JPY 32,200/MT (USD 294) up by JPY 400/MT on W-o-W basis. For Kanto region, H2 assessed at JPY 32,500/MT (up JPY 300/MT W-o-W) and for central region price index moved up by JPY 1000/MT to JPY 33,100/MT respectively.

Japan's H2 scrap export prices assessed in the range of 34,000-34,500/MT (USD 310-315) FoB for Kanto region while H2 prices stood at around JPY 33,500/MT (USD 307) for Gulf region in Japan.

Japan's leading EAF steel mini-mill - Tokyo Steel raised domestic scrap purchase prices by JPY 500/MT (USD 4.56) at two major works i.e. Tahara and Utsunomiya w.e.f 12th May'18. Now H2 scrap fetches JPY 35,000/MT (USD 319) at largest work in central Japan-Tahara. While the same grade fetches JPY 33,500/MT (USD 305) at Utsunomiya work which is based in the Kanto region in north Japan.

~Inputs from Steel Daily