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 yesterday (18th Dec) in the last 3 months’ period.
According to reports, in the auction two winning bid was awarded total 8,600 MT of Japanese H2 at an average of JPY 28,849/MT (USD 257), FAS. The highest bid was presented by Shinko Shoji Company at JPY 29,400/MT for 2,600 MT H2 for which shipment is due during 10th-20th Jan’19. While second winning bid fetched 6000 MT H2 at JPY 28,810/MT by Toyota materials for which loading period is scheduled as 21st Feb-20th Mar’19.
The tender is concluded in Dec’18 after a gap of 3 months as the overseas market remained weak in Japan. The association conducted the earlier tender in Sept’18 in which average bids were recorded at JPY 34,486/MT (USD 306), FAS. Bids recorded in Dec’18 fell sharply by JPY 5601/MT (USD 50) as against the Sept’18 auction.
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 29,000-30,000/MT, FoB for H2.
‘Kanto Tetsugen’- monthly ferrous scrap export tender held on 11th of this month observed a total of 20,000 MT H2 auctioned at an average bid at JPY 29,478/MT (USD 261), FAS. Kansai tender’s average bid has remained lower by JPY 630/MT (USD 6) against average bids for Kanto tender in Dec’18.
Although Japanese scrap prices have come down sharply in the past few weeks, it is interesting to see if there comes any major impact of lower bids on bottoming Japanese prices in upcoming days. The tight situation of supply and demand continues in Japan’s local market while overseas demand remains weak.
Inputs – Japan Metal Daily
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