H2 scrap declines during April Tetsugen scrap auction

During the recent April Kanto Tetsugen scrap auction in Japan for May shipment, the highest bid for H2 scrap was at JPY 27,380/mt ($247/mt) FAS and the average bid price was at JPY 26,426/mt ($239/mt) FAS on approximately 35 percent less volume compared to the volume traded in March.

 

On April 13, H2 scrap export prices are being heard at 27,000-28,000/mt ($248-257/mt) FOB Tokyo Bay with dock prices declining to JPY 26,000-27,000/mt ($239-248/mt) FAS at port of origin. Prices declined JPY 3,000-3,500/mt compared to mid-March FOB export prices. In dollar terms, compared to mid-March export offers of $266-271/mt FOB Tokyo Bay reported by SteelOribs on March 17, export prices declined $18/mt from the bottom of the range and $14/mt from the top of the range.

 

While export prices are lower in tandem with the global trend, sources note that scrap for export is on limited availability since Japanese domestic prices are higher, therefore, sellers prefer the domestic market over export.  Domestic prices are being heard at JPY 29,000-30,500/mt ($266-280/mt) delivered to mill.

 

$1=JPY 110.86 04/05/2017
$1=JPY 108.97 04/13/2017