Kansai Scrap Export Tender for September Fetches Bid Down by USD 3

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 yesterday (21st Sept) for this month.

According to reports, in the auction winning bid was awarded total 5,200 MT H2 at JPY 34,450/MT (USD 306), FAS. Bids in Sept'18 recorded down JPY 330/MT (USD 3) M-o-M. Shipments foe this are scheduled in between October-November. 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 20th Aug’18, in which the average bids were recorded at JPY 34,780/MT, FAS for 5,000 MT of H2 scrap.

‘Kanto Tetsugen'- monthly ferrous scrap export tender for Sept’18 was concluded on 11th Sept in the Kanto region in Japan. The average bids for Sept’18 were recorded at JPY 34,486/MT (USD 306), FAS. On monthly premises, bids have edged down by JPY 374/MT (USD 3) M-o-M as against the average bids fetched at JPY 34,860/MT (USD 310), FAS in Aug’18.

In Sept’18 Kanto's auction, total 15,510 MT of Japanese H2 scrap was awarded for three winning bids placed. The first winner fetched 5,150 MT of H2 scrap at JPY 34,735/MT followed by second and third securing 5000 MT each at JPY 34,500/MT and JPY 34,215/MT respectively.

Although the winning bid fetched in Kansai September tender remained almost similar with bids for Kanto tender, it stands JPY 500-700/MT (USD 5-6) lower as compared with current market price of around JPY 36,000-36,500/MT, FoB at Kansai region and as against Tokyo Steel’s Okayama plant bids for H2 at JPY 38,000/MT in Japan. It is interesting to see if there comes any impact of lower bids on high Japanese prices in upcoming days.