Japan’s monthly ferrous scrap export tender – Kanto Tetsugen has recorded average bids down by USD 24/MT for Feb’18.
As per recent update received from sources, ‘Kanto Tetsugen’- monthly ferrous scrap export tender concluded today on 9th Feb at Kanto region in Japan. In the auction, total 15,000 MT of Japanese H2 scrap was awarded through three winning bids placed at an average price of JPY 34,750/MT (USD 319), FAS Japan. Thus, average bid for Feb’18 tumbled down by JPY 2,639/MT (USD 24) as against JPY 37,389/MT (USD 343), FAS Japan in Jan’18.
The auction witnessed three winning bids each for 5,000 MT out of which highest (H1) fetched at JPY 34,800/MT (USD 320), second highest (H2) at JPY 34,750/MT (USD 319) and third at JPY 34,700/MT (USD 318.5) on FAS Japan respectively. 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.
On monthly premises, the winning bid fetched was almost JPY 3000/MT (USD 28) lower in Feb’18 as against bids in Jan’18. Earlier to this, in the January months’ tender which was concluded on 12th Jan’18, the winning bid was recorded last 83 months’ high price at JPY 37,800/MT as against JPY 37,986/MT of Feb’11.
It was already expected by most of the traders and sellers that the bids for Kanto Tender in Feb’18 would move down owing to falling demand for Japanese scrap from South Korean major scrap importers and over continuously weakening global scrap prices.
Recently, Japanese scrap sellers from Kanto, Central and Kansai regions have reduced scrap export prices by upto JPY 1000/MT (USD 9) following which yesterday the scrap export prices for H2 scrap were assessed at around JPY 35,000-35,500/MT, FoB Japan. Currently, Tokyo Steel fetches H2 at JPY 37,000/MT (USD 340) at largest work in central Japan-Tahara which is likely to get into influenced by todays’ price drop in Kanto tender.
In CY16, Total 245,000 MT ferrous scrap was exported from Japan through this tender out of which Vietnam imported 220,000 MT occupying 89% share followed by Taiwan (15,000 MT) and Korea (10,000 MT) respectively.
What is the Kanto Tetsugen export tender?
Kanto Tetsugen Cooperative Association was established in Nov’2001 to make the joint export of steel scrap to foreign countries along with the domestic trade. It consists of 80 companies of a metal recycling business in Tokyo, Saitama, Kanagawa, Chiba, Gumma, Tochigi, Ibaraki, and Yamanashi. It exports steel scrap majorly to East Asian countries like Vietnam, Taiwan, South Korea, China and Indonesia. Kanto Tetsugen Tender set the benchmark in Japanese scrap market in terms of prices and trends.
Key features of Kanto Tetsugen monthly scrap tender –
1. The grade of steel scrap is constituted by mainly H2 and H1 as well. H2 is steel scrap based on Japanese industrial standards.”500mm in width or less, 1,200mm in length or less, thickness 3mm – 6mm, weight 1,000 kg or less”.
2. Quality inspections are done twice, once by members and the second by the surveyor at the port.
3. In addition, radioactive checking is performed before loading the scrap on vessels.
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