Japan’s Kansai Iron and Steel Federation, an association of scrap dealers around the Osaka region was concluded yesterday, (26th July) in which the winning bid was awarded a total 5,000 MT of Japanese H2 at an average of JPY 28,120/MT (USD 259), FAS. Participants believe that supply tightness could be the reason for rising tender’s bids and it would also keep Japanese scrap prices supported in the coming days.
Notably, the tender fetched average bids higher by JPY 910/MT (USD 8 ) against the last tender concluded at JPY 27,210/MT on 2nd of July’19. 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/MT (USD 267), FoB for H2 scrap which is marginally up than current market levels.
As an impact of this, it is expected that Japanese scrap prices may exhibit recovery in the short term however it is difficult to ascertain that prices will rise amid lack of clarity in terms of supply-demand situation. However, additional cuts in domestic scrap prices are expected to suppress as scrap export prices have been increased considerably.
~ Inputs from SteelDaily
Leave a Reply