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Kanto Tetsugen sells No 2 HMS for export at JPY 25643 FAS
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Friday, 16 Nov 2012
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Japan's Tokyo based Kanto Tetsugen cooperative association of ferrous scrap dealers has sold two successful bidders a total of 20,000 tonnes of No2 HMS at an average JPY 25,643 per tonne FAS Tokyo Bay in the tender the association held November 9th 2012 to export locally available ferrous scrap from the Kanto area for November contracts. The deadline for ship loading is January 15th 2013.

The average sales price indicates an increase of JPY 3,002 or 13.3% on the corresponding average in the association's earlier export tender, an advance for the first time in three months.

What Kanto Tetsugen has sold breaks out as 9,000 tonnes at JPY 25,830 per tonne FAS for Marubeni Tetsugen Co; 6,000 tonnes at JPY 25,590 per tonne FAS for Marubeni Tetsugen Co and 5,000 tonnes at JPY 25,370 per tonne FAS for Sumikin Bussan Corporation.

The tender this time brought a total of 29 FAS bids from 14 trading companies. Of the total, the first 13 bids stood at JPY 25,000 per tonne or beyond. Meanwhile, the lowest bid in the rest was JPY 22,200 per tonne. Offered purchases totaled 164,000 tonnes, up 34,000 tonnes or 26.2% from a month ago, when they marked the second highest level after 166,500 tonnes in January 2009.

Mr Yuhei Yamashita president of Kanto Tetsugen said that "Results of the tender went far beyond expectations. The board of directors talked about the prospects of how the tender would come out when it met October 7th 2012. At the meeting, they believed that it would be a nice event if bids stood at the level of JPY 24,000 per tonne FAS as a whole."

He added that "Behind a considerable increase in the average sales price lies a major influence from the US composite price of No1 HMS that advanced by more than USD 40 from a week ago as of November 5th 2012. The upswing in the US composite price is said to have reflected the damage caused by Hurricane Sandy to the northeast of the USA."

Mr Yuhei Yamashita said that "The cargoes sold in the tender could be allocated for exports to Southeast Asia. In this connection, no new negotiated deals have come to light so far for ferrous scrap exports out of Japan to South Korea. With the tender results this time, it is likely that the Kanto market for local ferrous scrap will continue strong until consecutive holidays of November 23rd 2012 to November 25th 2012."

Source - TEX Report Limited

(www.steelguru.com)

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