Other Elements and Materials

Japan: Kanto Monthly Scrap Export Tender for November Fetches Bids Down USD 9

Japan: Kanto Monthly Scrap Export Tender for November Fetches Bids Down USD 9
Mining News Pro - As per recent updates received from sources, ‘Kanto Tetsugen’- monthly ferrous scrap export tender for Nov’18 concluded today (on 9th Nov) in Kanto region in Japan.
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According to Mining News Pro -As per recent updates received from sources, ‘Kanto Tetsugen’- monthly ferrous scrap export tender for Nov’18 concluded today (on 9th Nov) in Kanto region in Japan. The average bids recorded at JPY 33,875/MT (USD 297), FAS. As in Nov’18 tender, first winning bid fetched 5000 MT H2 scrap at JPY 34,050/MT, FAS and second winning bid recorded for 5000 MT H2 at JPY 33,700/MT, FAS.

Notably in Oct’18, no material was booked the first time in last 14 years amid no deal concluded. Even the highest export bid was lower than the expected bids in Oct’18. On monthly premises, bids have edged down by JPY 1025/MT (USD 9) M-o-M as against the average bids fetched at JPY 34,900/MT (USD 306), FAS in Oct’18.

However, bids in Nov’18 have edged down by JPY 611/MT (USD 5) as against average bids at JPY 34,486/MT, FAS in the tender concluded in Sept’18.

Monthly around 20,000 MT H2 get auctioned through this tender. It is also to be noted that FoB prices for the same are higher by around USD 9-10/MT than FAS (free alongside ship) prices.

What could be its impact - According to reports, bid placed in Nov’18 tender remained lower than purchase prices prevailing in domestic market in Kanto area indicating clear sense of the market. Tokyo steel’s H2 purchase price stands at JPY 36,500/MT at Utsunomiya work located in the same Kanto region.

H2 scrap prices are hovering in the range of JPY 33,000-34,000/MT in Tokyo region in recent deals. However, scrap prices in Kanto region seem inevitable for time being with decent finish steel demand in Japan.

What happened in Japan’s domestic and export scrap market in last 1 month?

Japan’s leading EAF steelmaker Tokyo Steel observed downturn in prices in early Nov’18 after holding prices high for almost 1 month. In last three successive cuts observed prices come down by JPY 1500-2500/MT (USD 13-22) at all five works in Japan. Tokyo Steel fetches H2 at JPY 37,500/MT at Kyushu and JPY 35,500/MT at Tahara works as per last update on 07th Nov.

South Korean steelmakers remained buying materials as per their requirements from Japan’s spot market instead of placing bids for it. South Korea observed successive price cuts for domestic scrap amid high inventories in hand. H2 offers from Japanese sellers assessed at JPY 35,000-35,500/MT, CFR South Korea which comes around JPY 34,000/MT, FoB Japan, slightly lower than Kanto bids in Nov’18.

In last one month’s time, JPY remain hovering and has depreciated from 112.2 on 11th Oct’18 to 113.9 today against USD. This could have supported further domestic demand over scrap exports in Japan.

 


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