In the export auction on February 9th, a total of 15,000 tons of H2 scrap ended at 53,087 Yen per ton (355 USD), marking consecutive fourth-month price increase with a 6 Yen per ton increase compared to the previous month. This raised the FOB price of scrap to 362.27 dollars per ton for shipment to Bangladesh.
While the auction result for February showed a slight increase compared to the previous month, it remained significantly higher than the current feasible level in the maritime transport market. Other H2 offers to different markets were around 52,000 Yen per ton last week.
Given the prolonged weak sentiment in the steel market, uncertainty persists about whether buyers in other markets will be willing to follow this price increase. A Japanese trader stated, "Bangladesh is a different market because approximately 15,000 tons are required for each shipment. Due to the challenges of gathering such a large quantity, there is a certain price premium available."
Japanese traders are waiting to see if the positive auction result will lead to an increase in collection prices at Tokyo Steel's Utsunomiya facility.
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