In early March, SteelOrbis reported firm Japanese exporters’ expectations of JPY at 29,000-29,500 ($255-259/mt) FOB Tokyo Bay which translated to approximately $290/mt CFR Vietnam and $280-285/mt South Korea and Taiwan. Export buyers in the region were heard waiting for further market indicators prior to making deals for late April and May shipments.
The recent Kanto Tetsugen scrap auction in Japan exhibited a jump in bid prices. The highest bid for H2 export increased by JPY 5,100/mt compared to the highest bid in February and closed at JPY 31,160/mt (or $271/mt) FAS or approximately JPY 32,000/mt ($279/mt) FOB Tokyo Bay. Including all 17 bids for 160,000 mt of ferrous scrap, the average price was JPY 29,765/mt FAS ($259/mt) or JPY 30,660 ($267/mt) FOB Tokyo Bay.
Bids by South Korean mills for Japanese H2 material were recently heard at JPY 30,500/mt ($266/mt) FOB Tokyo Bay. According to a source, “The higher prices paid during the scrap auction will definitely increase export deal prices, especially, as scrap is showing strength globally.” Traders are currently paying JPY 29,000/mt ($253/mt) up JPY 1,500-2,000 ($13-17/mt) compared to earlier in March to acquire scrap for export.
Several Japanese domestic mills were heard increasing their scrap buying prices this week by JPY 500-1,000/mt ($4-8/mt).
US West coast prices are still being established as a result of the auction, therefore, no active offers for scrap inventory are being heard in the market. According to a US source, “West coast exporters have been heard holding off on active offers to Asian destinations pending the results of the Japanese scrap auction. This development could move scrap prices up $10-20/mt on the West coast. Japanese scrap dealers are heard holding on to their scrap inventory at the moment pending an increase in bid prices. US will see the same.” In early March, SteelOrbis reported offer prices for bulk HMS I/II 80:20 scrap from the US West coast at $285-$295/mt CFR South Korea and $290-305/mt CFR Vietnam.
Initial gauges for H2 for export are at JPY 30,250-31,000/mt ($263-$270/mt), FOB Tokyo Bay.
$1=JPY 113.75 3/1/2017
$1=JPY 114.83 3/9/2017
$1=JPY 114.83 3/9/2017