On November 9, SteelOrbis reported higher Tetsugen scrap auction prices supported by both higher domestic and export prices.
Sources inform SteelOrbis that domestic H2 scrap purchasing prices by mini-mills in Tokyo, Osaka, and Nagoya regions are now approximately at JPY 32,500-32,900/mt ($288-291/mt) delivered to customer. Prices have increased by JPY 900-1000/mt ($9-11/mt). Of note, a large Japanese mill continues buying domestic scrap at up to JPY 34,000/mt ($301/mt) for domestic scrap outside the immediate region, thereby encountering higher freight charges. In dollar terms, the price is up $2/mt on currency fluctuations compared to a week ago.
Export deals on containerized H2 have reportedly closed recently at JPY 32,000-33,000/mt ($283-292/mt) FOB. The updated market price range represents an increase of JPY 1,000-2,000/mt or $10-20/mt compared to a week ago. Active offers are reportedly at JPY 32,800-33,500/mt ($290-296/mt) FOB, up JPY 800-1,500/mt from JPY 32,000/mt ($282/mt) or $8-14/mt higher than a week ago.
South Korean and Vietnamese mill bids for H2 containerized material have reportedly been heard in the market at JPY 31,500-31,800/mt FOB ($279-281/mt) or approximately $320/mt CFR Vietnam, for example, but they have not attracted scrap sellers.
As South Korean domestic scrap prices are reportedly increasing by $5-8/mt, depending on mill, and Japanese scrap buying prices for export are also increasing, Japanese sellers are remaining firm on export offer prices. The effect is expected to support US export prices on the US West coast.
$1= JPY 113.53, (Nov 9)
$1= JPY 113.04, (Nov 15)