On January 12, SteelOrbis reported the highest bid at the January Tetsugen scrap auction was JPY 37,820/mt ($340/mt) FAS and average bids at JPY 36,059/mt ($324/mt) FAS. These prices translated to JPY 38,500/mt ($346/mt) FOB and JPY 36,800/mt ($331/mt) FOB, respectively.
In the February Kanto Tetsugen auction this week, the average of the top three winning bids for 15,000 mt of H2 scrap was JPY 34,750/mt ($321/mt) FAS which equivalent to approximately JPY 35,650-35,700/mt ($329/mt) FOB Tokyo Bay. FOB prices declined $17/mt in dollar terms from January.
The auction of 19 bids for nearly 130,000 mt of H2 scrap attracted an average bid of JPY 33,383/mt ($308/mt) FAS or approximately JPY 34,283-34,383/mt ($316-317/mt) FOB Tokyo Bay. In dollar terms, prices declined $14-15/mt on FOB from January.
A source noted that the average auction results are in line with export demand, although the top three winning bids were rumored to have been purchased by a domestic steelmaker. South Korean bids have widened the bottom of the range by JPY 500 to JPY 34,000-35,000/mt ($314-323/mt) FOB in the last few days for export H2 scrap compared to the most recent SteelOrbis report on February 6. The bids have reportedly been successful at attracting desired volumes.
A source added that since the top bids were from a domestic buyer, the buyer may be hedging against expectations of increases in domestic H2 scrap prices in March and April.
USD= JPY 111.22 (Jan 12)
USD = JPY 108.38 (Feb 9)