Japan’s Kansai Iron and Steel Federation, an association of scrap dealers around the Osaka region concluded its tender for Feb’20 yesterday (12th Feb’20).
The winning bid in this month’s tender was awarded a total of 5,200 MT of Japanese H2. The bid was concluded at an average price of JPY 22,750/MT (USD 207) FAS, decreasing by JPY 2,900/ MT (USD 26) against the previous month’s bid price which was reported at JPY 25,650/MT (USD 233) level.
After sharp fall in yesterday’s Kanto tender result, a significant drop in Kansai’s result was widely expected and the winning bid price level for Kansai result is on par to yesterday’s Kanto’s tender result at JPY 22,751/MT (USD 207) FAS average price for 25,200 MT of Japanese H2 scrap.
It was anticipated by the Japanese recyclers that the tender price will fall below JPY 21000/MT (USD 191), but the tender was concluded at a price higher than this level.
Notably, Japan’s Tokyo steel has cut its domestic scrap purchase price by JPY 2500-3000 /MT (USD 23-27) in a span of 8 days, indicating a collapse in the domestic scrap market. After yesterday’s price cut by JPY 1000/MT the company is now paying JPY 20,500/MT (USD 187) for H2 scrap delivered to its Tahara plant in the central region, and JPY 20000/MT (USD 182) to Utsunomiya plant in the Kanto region.
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