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

According to Mining News Pro -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.