Japan’s Kanto Tetsugen ferrous scrap (H2) monthly tender for Jul’17 fetched bid higher by Japanese Yen 2,510 (USD 22/MT). Most of the buyers and suppliers were eagerly waiting for this tender which was scheduled and conceded on 11 Jul’17.
As per sources, the average bid price in Jul’17 tender stood at USD 245.3 (Japanese Yen 28,035) FAS higher by USD 22/MT (Japanese Yen 2,510), 10 % against the average of previous month’s tender conducted in Jun’17. In Jun’17, the tender fetched average bid price of USD 223 (Japanese Yen 25,525).
The H2 is a 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 Jul’17 auction attracted participation from many companies. Major participating companies were found to be Japanese corporate looking at the higher local consumption of ferrous Scrap. As per sources 10,000 MT scrap was booked at USD 245.9 (Japanese Yen 28,110) FAS by Itochu Group. Another 5,000 MT scrap was booked by Sangyo Shinko, at USD 245.8 (Japanese Yen 28,100) FAS. The third lot of 5,000 MT scrap received highest bid at USD 243.4 (Japanese Yen 27,820) FAS by JFE Sholi steel corporation, Tokyo.
It is to be noted that FoB prices for the same are higher by around USD 9-10 than FAS (free alongside ship) prices.
What is the 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, and Yamanashi. It also exports steel scraps to primly East Asian countries like South Korea, China, Taiwan, Vietnam, and Indonesia.
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