Japan’s monthly ferrous scrap export tender – Kanto Tetsugen has witnessed sharp increase in the bid prices this month. As per the recent update, in the tender concluded today (on 9 Nov) the average bid price for H2 grade scrap stood at Japanese Yen 31,890/MT FAS (USD 280/MT) for the Japanese special grade ferrous scrap (H2). Around 20,000 MT H2 grade scrap was auctioned through this tender.
The bids fetched this month are up by Japanese Yen 1,338/MT (USD 12/MT) M-o-M as the average bid was at Japanese Yen 30,552 (USD 268) in the last month’s tender (i.e. Oct’17).
Japanese scrap export prices have moved up in line with rising domestic scrap prices. Amid rising steel demand in Japan, steel mills have raised domestic scrap purchase price. Japan’s leading EAF meeting -Tokyo Steel has raised scrap buying prices further by USD 4-9/MT with effect from 08 Nov’17. Now H2 scrap fetches JPY 34,000/MT (USD 298) at largest work in central Japan-Tahara. While the same grade fetches JPY 33,000/MT (USD 290) at Utsunomiya works in north Japan.
In CY16, Total 245000 MT ferrous scrap was exported from Japan through this tender out of which Vietnam lifted 220000 MT occupying 89% share followed by Taiwan 15000 MT and Korea 10000 MT respectively.
What is the Kanto Tetsugen export tender?
Kanto Tetsugen Cooperative Association was established in Nov’2001 to make the joint export of steel scrap to foreign countries along with the domestic trade. It consists of 80 companies of the metal recycling business in Tokyo, Saitama, Kanagawa, Chiba, Gumma, Tochigi, Ibaraki, and Yamanashi. It exports steel scrap majorly to East Asian countries like South Korea, China, Taiwan, Vietnam, and Indonesia.Kanto Tetsugen Tender set a benchmark in Japanese scrap market in terms of prices and trends.
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