In line with marginal fall of USD 2/MT registered in bids for Kanto Tetsugen in Japan, Kansai scrap export tender has fetched bids nearly stable M-o-M for June’18.
Kansai Tetsugen is an association of scrap dealers around Osaka region in Japan. They conduct scrap export tender through which usually around 5,000-10,000 MT H2 scrap get auctioned per month in Japan. As per updates received on this, Kansai scrap tender has conducted yesterday (on 18th June) for this month.
According to sources, in the auction conducted for June’18, two winning bids were awarded total 10,200 MT H2 encompassing around 5000 MT H2 at JPY 33,675/MT (USD 307), FAS and remaining 5,200 MT H2 at JPY 33,400/MT (USD 305), FAS respectively. Thus, average bid for Jun’18 has recorded at JPY 33,535/MT (USD 306) on FAS basis. 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.
Kansai tender concluded earlier to this was on 14th May’18, in which the bids were recorded at JPY 33,500/MT, FAS for 5000 MT of H2 scrap. On monthly premises, Kansai bids for June’18 have inched up by JPY 35/MT (USD 0.3).
Kanto Tetsugen, Japan’s largest monthly ferrous scrap export tender concluded on 13th June in Kanto region fetched average bids at JPY 34,000/MT (USD 310), FAS down by JPY 245/MT (USD 2) on M-o-M basis as against the average bids at JPY 34,245/MT in May’18.
The winning bid fetched in Kansai tender was recorded slightly lower than bids for Kanto tender, however, higher by JPY 2,035/MT (USD 19) against the current market prices in Okayama region as Tokyo Steel’s Okayama plant fetches H2 at JPY 31,500/MT in Japan.
Domestic scrap prices likely to move down further – Japan’s leading EAF steel mini-mill – Tokyo Steel cut domestic scrap purchase prices by JPY 500/MT (USD 5) twice last week at Utsunomiya work located in Kanto region. Now H2 scrap fetches JPY 36,000/MT (USD 328) at Utsunomiya work, however, plant official reported that the company may announce further price cuts in coming days.
Japan’s H2 scrap export prices assessed in the range of 33,500-34,500/MT (USD 305-314) FoB for Kanto region while H2 prices stood at around JPY 33,000-34,000/MT (USD 301-310) for Gulf region in Japan.
~Inputs from Steel Daily and Japan Daily
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