Japan’s Kansai Iron and Steel Federation is an association of scrap dealers around the Osaka region. Usually, it conducts a joint scrap export bidding through which around 5,000-10,000 MT of H2 scrap get auctioned in Japan. As per updates received on this, Kansai scrap tender conducted today (18th Jan) in which the winning bid was awarded a total 5,000 MT of Japanese H2 at an average of JPY 28,710/MT (USD 262), FAS.
The association conducted the tender a month earlier in Dec’18 in which average bids were recorded at JPY 28,849/MT (USD 264), FAS. Bids recorded in Jan’19 fell just JPY 139/MT (USD 1) as against the Dec’18 auction. The scrap volume booked likely to get exported to South Korean importer in Feb-Mar’19.
The tender was concluded in Dec’18 after a gap of 3 months as the overseas market remained weak in Japan.
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. Thus, the average bids stand equivalent to JPY 29,000-29,500/MT, FoB for H2.
In ‘Kanto Tetsugen’- monthly ferrous scrap export tender held on 11th Jan’19, a total of 20,000 MT H2 auctioned at an average bid at JPY 28,775/MT (USD 263), FAS. Kanto tender bids fell by JPY 703/MT(USD 6.5) M-o-M in Jan’19. Kansai tender’s average bid has inched down just JPY 65/MT against average bids for Kanto tender in Jan’19.
As an impact of this, it is expected that Japanese scrap prices may observe further correction. Also, Hyundai Steel has shown the interest at JPY 28,500/MT, FoB levels after booking bulk H2 at JPY 29,000/MT, FoB.
Domestic H2 average scrap price index reported by the Japan Steel Association stands at JPY 28,100/MT, lower by JPY 600/MT against the last week.
~ Inputs from SteelDaily
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