In line with marginal rise registered in bids for ‘Kanto Tetsugen – largest scrap export tender’ in Japan, Kansai tender also has fetched bids up USD 7/MT M-o-M for July’18.
Kansai Tetsugen is an association of scrap dealers around Osaka region in Japan. It conducts monthly scrap export tender through which usually around 5,000-10,000 MT H2 scrap get auctioned in Japan. As per updates received on this, Kansai scrap tender has conducted today for this month.
According to reports, in the auction winning bid was awarded total 5,200 MT H2 at JPY 34,330/MT (USD 305), FAS. Shipments for this are scheduled in between mid-August to mid-Sept’18. 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 in the last month was on 18th Jun’18, in which the average bids were recorded at JPY 33,535/MT, FAS for 10200 MT of H2 scrap. On monthly premises, Kansai bids for Jul’18 have edged up by JPY 795/MT (USD 7).
Kanto Tetsugen, Japan’s largest monthly ferrous scrap export tender concluded on 11th July in Kanto region fetched average bids at JPY 34,330/MT (USD 305), FAS up by JPY 330/MT (USD 3) on M-o-M basis as against the average bids at JPY 34,000/MT in June’18.
The winning bid fetched in Kansai tender remained at the equal level with bids for Kanto tender and also remained in line with current market price of around JPY 34,000/MT at Osaka region however, higher by JPY 1830/MT (USD 15) against the current market prices in Okayama region as Tokyo Steel’s Okayama plant fetches H2 at JPY 32,500/MT in Japan.
In last one weeks’s time, JPY depreciated by around 2%. JPY stood at 112.6 today which was trading at around 110.7 a week ago against USD.
Tokyo steel’s plants likely to remain close for maintenance – Japan’s leading EAF steel mini-mill – Tokyo Steel plans to shutdown its plants for maintenance in upcoming days. Its Okayama plant in western Japan is scheduled for shutdown from 23rd July to 27th July, Kyushu plant in western Japan will be shut between 26th July -1st August, Tahara in central Japan will close for maintenance in between 23rd July to 3rd August, and Utsunomiya in the north of Tokyo will be shut from 30th July – 9th August. Which may result in fall in production and supply in the market along with slowdown in scrap purchases further.
Japan’s H2 scrap export prices assessed in the range of 34,500-35,500/MT (USD 306-315) FoB for Kanto region and Gulf region in Japan.
~Inputs from Steel Daily and Japan Daily
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