Japan’s Kanto Tetsugen ferrous scrap monthly auction fetched bid higher by USD 45/MT. Tender for 20,000 MT scrap, which concluded this week attracted a highest bid of Yen 31,150/MT (USD 275) FAS for H2 material, Yen 5,099/MT (USD 45) higher than last month’s highest bid. This is equivalent to about Yen 32,100/MT (USD 284) on FOB basis. Osaka-based scrap trader, Ohgitani Corp, placed the winning bid for 20,000 MT, according to sources.
In February, the tender was bid at Yen 26,051/MT (USD 232) FAS for H2 Material.
Sellers are not being able to sell at these prices as the rising prices of scrap have made the buyers cautious and they are waiting for the market to settle down.
Japanese scrap export prices as well as domestic prices are expected to rise further after the closure of the tender.
Japanese scrap export has seen a downfall of 24% M-o-M as in Dec’16 it was 0.83 MnT which came down to 0.63 MnT in Jan’17. Whereas on Y-o-Y basis exports remained stable. Japan, the third largest exporter of ferrous scrap; exported around 8.55 MnT in CY’16
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