Bids in today’s tender moved up by around USD 18/MT against last month.
Kanto Tetsugen’- Japan’s monthly ferrous scrap export tender for Nov’19 was concluded today (12th Nov’19) in the Kanto region, SteelMint learned from market participants, finally observing a rise in bids after a gap of 7 months.
A total of 30,100 MT of Japanese H2 scrap was awarded at an average of JPY 24,307/MT (USD 223), FAS, as compared to JPY 22,293/MT in Oct 2019, witnessing a significant rise JPY 2,014/MT (USD 18) in the winning bids after observing 7 successive falls since Apr ’19.
Monthly around 20,000-30000 MT of H2 scrap is auctioned through this tender. Notably, the FoB prices for the same are higher by around USD 9-10/MT than FAS prices. After successively dropping till last month by around JPY 11,717/MT (USD 109) in total since peaking in Mar’19, the sharp rise in bid this month is pointing towards improvement in the Japanese scrap market.
What can be inferred from Kanto’s result in Nov’19?
The noteworthy rise in Kanto’s bids this month, now putting it considerably higher than current domestic scrap price levels, is indicating a likelihood of a rebound in Japan’s domestic scrap market, which bottomed out after continuous downtrend since Apr’19. It is being expected that Japan’s Tokyo Steel, who have kept their bids unchanged since last 4 weeks, mayrevise their bids in the coming days, along with other EAF based steelmakers in the country.
Although bids from overseas buyers for Japanese scrap have resisted to rise recently even as export offers had witnessed a rise, with Korean steelmaker ‘Hyundai steel’ still holding its purchase price at JPY 22,000/MT FoB for H2. However no significant booking was reported in last one week by Korean mills owing to high inventories and disparity in bids & offers.
The Japanese Yen slightly depreciated in Oct’19 and stood in the range of109 levels against USD, against 107-108 levels in the previous month before.
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