On December 12, SteelOrbis reported a month-on-month increase in the December Kanto Tetsugen scrap auction.
A source noted that from July to December 2017, the highest winning bids trended generally up with a slight dip in October and trended at a gap of JPY 9,000-10,000/mt higher compared to the tender results in the respective months in 2016. Along the same lines, the January 2018 highest bid is trending JPY 10,590/mt higher than the highest bid in January 2017 which traded at JPY 27,230/mt ($237/mt) FAS.
Recent H2 export trades earlier this week were reportedly around JPY 36,500/mt ($323/mt) FOB Tokyo Bay on offers of JPY 37,000/mt ($327/mt) FOB.
In the January Tetsugen auction that traded 128,000 mt of scrap, the highest bid was JPY 37,820/mt ($340/mt) FAS, up JPY 1,695/mt or $22/mt on currency fluctuation as JPY has gained strength against the dollar. This translates to approximately JPY 38,500/mt ($346/mt) FOB. The average bid was JPY 36,059/mt ($324/mt) FAS or about JPY 36,800/mt ($331/mt) FOB.
Sources inform SteelOrbis that export offers for H2 material have increased as a result of the auction results and are presently at JPY 37,500-38,300/mt ($337-344/mt) FOB. Export traders are reportedly paying JPY 35,000-35,500/mt ($315-319/mt) FAS for scrap collection but collection prices are expected to increase next week along with the higher export offers.
USD= JPY 115.04 (Jan 13, 2017)
USD= JPY 113.63 (Dec 12)
USD= JPY 113.08 (Jan 8)
USD= JPY 111.22 (Jan 12)