Japan’s monthly ferrous scrap export tender – Kanto Tetsugen has witnessed fall in the bid prices this month. As per the recent update, in the tender concluded today (on 12th Oct) the average bid price stood at Japanese Yen 30,552/MT FAS (USD 272/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 down by Japanese Yen 1,678/MT (USD 15/MT) M-o-M as the average bid was at Japanese Yen 32,230 (USD 288) in the last month’s tender (i.e.Sept’17).Bid prices in Kanto Tender have witnessed downturn after successive hikes in last four months.
Out of 20,000 MT scrap sold via Kanto Tender of Oct’17, 5,000 MT scrap was sold at Japanese Yen 30710/MT FAS to Econecol metal recycler based in Fuji province which turned out to be the H1 bidder. Remaining 15,000 MT scrap was sold at Japanese Yen 30,500/MT FAS to Toyota Tsusho Metals based in Nagoya region Japan.
It is to be noted that FoB prices for the same are higher by around USD 9-10 than FAS (free alongside ship) prices. It was expected by most of the traders and sellers that the bid prices for Kanto would drop owing to recent fall towards ending of Sept’17 in the global scrap offers.
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.
Key features of Kanto Tetsugen monthly scrap tender –
1. The grade of steel scrap is constituted by mainly H2 and H1 as well. H2 is steel scrap based on Japanese industrial standards.”500mm in width or less, 1,200mm in length or less, thickness 3mm – 6mm, weight 1,000 kg or less”
2.Quality inspections are done twice, once by members and the second by the surveyor at the port.
3. In addition, radioactive checking is performed before loading the scrap on vessels.
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