Japan’s Kanto Tetsugen ferrous scrap monthly auction fetched bid lower by USD10/MT. Tender for 20,000 MT scrap, which concluded last week, attracted a highest bid of Yen 26,051/MT (USD232) FAS for H2 material. This is equivalent to about Yen 27,000/MT (USD241) on FOB basis.
In January, tender fetched highest bid at Yen 27,230/MT (USD243). According to market participants, current cargo has been bought by JFE.
Global scrap prices have started recovering on limited scrap supplies and rising steel export offers from Chinese companies. Participants mention that, since this is a monthly tender, lower bid does not depict the right trend. Overall demand for scrap is strong across the world and prices will remain strong.
Japan Exported 8.55 MnT Scrap in 2016
Japan; the third largest exporter of ferrous scrap; exported around 8.55 MnT in CY’16 registered a growth of 12% Y-o-Y against 7.65 MnT in CY’15.
What is Kanto Tetsugen Export Tender?
Kanto Tetsugen Cooperative Association was established in November 2001 to make the joint export of steel scraps to foreign countries. It consists of 80 companies of metal recycle business in Tokyo, Saitama, Kanagawa, Chiba, Gumma, Tochigi, Ibaraki, Yamanashi. It also exports steel scraps to Korea, China and South East Asian countries. Association conducts export tender of about 20,000 MT every month.
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