In the Japan-based Kansai scrap export tender, bids have increased by $21/mt as compared to the Kanto tender concluded on February 9, reflecting the positive sentiment in the Asian scrap market and expectations of further rises.
Accordingly, the highest bid from traders in the monthly Kansai-Cheorwon scrap export tender was at JPY 58,220/mt FAS ($503/mt). The FAS prices in the Kansai auction translate to JPY 59,220/mt ($512/mt) FOB. The cargo will be loaded between February 21 and March 31.
This is the highest level recorded in Kansai tenders since the record price hit in June 2018. The volume on offer is reportedly around 5,000 mt and market players report that there is a rumor about a winning bid buying a position cargo. “Usually position cargoes are cheaper, but I think the buyer is confident that the market is still bullish,” a Japan-based source commented.
As SteelOrbis reported previously on February 9, the Japan-based Kanto export tender for H2 scrap was closed at JPY 55,845/mt ($473/mt) FAS or JPY 56,845/mt ($491/mt) FOB, both average levels.
$1 = JPY 115.6