Japan’s monthly ferrous scrap export tender – Kanto Tetsugen for Dec’17 has recorded highest bids in last four years since Dec’13. On monthly premises, bids have increased by USD 37/MT in Dec’17 against Nov’17.
As per the recent update, ‘Kanto Tetsugen’- monthly ferrous scrap export tender has witnessed a sharp hike in the bid prices this month in Japan. In the tender concluded today (on 12th Dec) the winning bid price awarded was elevated at JPY 36,126/MT FAS (USD 318/MT) for the Japanese special grade ferrous scrap (H2). Around 15,000 MT H2 grade scrap was awarded to ITOCHU Corporation, Tokyo Japan through this tender in Dec’17
Earlier to this, highest prices were fetched at JPY 37,125/MT in December 2013. Thus, the bids recorded in Dec’17 has witnessed last 48 months’ highest in Dec’17.
The bids fetched in Dec’17 have hiked by JPY 4,236/MT (USD 37/MT) M-o-M as the average bid was at JPY 31,890 (USD 281) in last month’s tender concluded on 09th Nov’17.
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 rise owing to strong global prices and demand for scrap but surprisingly prices have gone up by quite unexpected margins.
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 a 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 the 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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