Japan’s Kanto Tetsugen ferrous scrap (H2) monthly tender fetched bid higher by USD 7/MT (Japanese Yen 790). 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.
The quantity offered comprised of 121,000 MT H2 scrap.
As per sources, the average bid price in Jun’17 tender was at USD 232 (Japanese Yen 25,525) FAS higher by USD 7 (Japanese Yen 790) against the previous month’s tender conducted in May’17.
The auction attracted participation from 13 companies. As per sources 5,000 MT scrap was booked at USD 236 ( Japanese Yen 26,000) FAS. Another 5,000 MT scrap was booked at USD 234 (Japanese Yen 25,700) FAS. The third lot of 10,000 MT scrap received bid at USD 229 ( Japanese Yen 25,200) FAS. It is to be noted that FoB prices for the same are higher by around USD 9 than FAS (free alongside ship) prices.
As per sources, the bidder for 20,000 MT cargo was Japan based – Sangyo Shinko.
The tender receiving higher bids seems surprising when increasing supplies of ferrous scrap from China is putting scrap prices under pressure.
What is Kanto Tetsugen export tender ?
Kanto Tetsugen Cooperative Association was established in Nov’01 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.
Leave a Reply