Sources inform SteelOrbis that the highest winning bid, average price of all bids, and total tonnage sold all increased in the recent Kanto Tetsugen scrap auction.
The highest winning bid was at JPY 36,125/mt ($318/mt) FAS or about JPY 37,000/mt ($326/mt) FOB for 15.000 mt of H2 grade scrap, placed by Japanese trading company Itochu. Compared to the November auction, the highest bid in the December auction garnered JPY 4,125 or $36/mt more. The average price also increased JPY 3,500/mt or $30/mt from JPY 30,980/mt ($273/mt) FAS in November to JPY 34,480/mt ($303/mt) FAS in December. The total tonnage sold was also higher at 140,000 mt compared to 125,000 mt in November.
As the recent export trades to South Korean mills are reportedly at JPY 34,500-36,000/mt ($299-317/mt) FOB, a source noted that “the strong increase in both average and highest bid levels in the latest auction point to expectations of a continued surge in H2 export scrap prices into February.”
$1= JPY 113.53 (Nov 9)
$1= JPY 113.63 (Dec 12)