In line with a marginal rise in bids of Kanto Tetsugen scrap export tender, Kansai tender has also fetched bids up USD 4/MT M-o-M for Aug’18 in Japan.
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 of H2 scrap get auctioned in Japan. As per updates received on this, Kansai scrap tender has conducted today for this month. Notably, the tender recorded its fourth successive monthly price hike since May`18.
According to reports, in the auction winning bid was awarded total 5,000 MT H2 at JPY 34,780/MT (USD 314), FAS. Japan’s Echo Nicole company was awarded the winning bid for this month with shipments scheduled in between mid-Sept to mid-Oct`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 17th Jul’18, in which the average bids were recorded at JPY 34,330/MT, FAS for 5200 MT of H2 scrap. On monthly premises, Kansai bids for Aug’18 have edged up by JPY 450/MT (USD 4).
Kanto Tetsugen, Japan’s largest monthly ferrous scrap export tender concluded on 09th August in Kanto region fetched average bids at JPY 34,860/MT (USD 315), FAS up by JPY 530/MT (USD 5) on M-o-M basis as against the average bids at JPY 34,330/MT in July month tender.
Although the winning bid fetched in Kansai August tender remained almost similar with bids for Kanto tender, it stands JPY 700-800/MT (USD 6-7) higher as compared with current market price of around JPY 35,000/MT, FoB at Kansai region and as against Tokyo Steel’s Okayama plant bids for H2 at JPY 35,000/MT in Japan. However, prices are less likely to move up on the impact of higher bids.
Tokyo steel raised scrap price at all plants - Japan`s leading EAF steel mini-mill - Tokyo Steel announced second price hike in August on 18th for its scrap purchase prices at all five plants. As per new price circular released, the steel manufacturer has raised prices by JPY 1000/MT (USD 9) at all five plants against last set of prices except three high grade scrap at Utsunomiya plant for which the company has raised bids by JPY 1500 (USD 14) amid tightened supply.
Amid increased operating hours on low electricity prices, EAF steelmakers in Japan have started restocking scrap. Few EAF companies continued to operate even during Obon holidays and now with the manufacturing sector resumed, they are trying actively to procure more raw materials.
Although export prices remained at the firm levels, but with generation shortage in the domestic market there is a possibility of driving of the export market in Japan. H2 scrap export prices assessed in the range of 35,000-36,000/MT (USD 316-325) FoB for Kanto region and Gulf region in Japan.
~Inputs from Steel Daily and Japan Metal Daily
