The 16 January export tender concluded with the sale of 15,000 metric tons of H2 scrap at ¥53,081/t fas, marking the third consecutive month of price increases and a ¥2,061/t rise from the previous month. The final fob price reached ¥54,081/t or $370.42/t, with the shipment destined for Bangladesh.
The resurgence of Bangladeshi buyers in the seaborne market, following a period of inactivity post-elections, contributed to steel mills bidding for deep-sea bulk cargoes at around $420/t cfr for HMS 1/2 80:20 basis.
The larger-than-expected increase in the Kanto tender is anticipated to influence sellers' target prices positively. Tokyo Steel responded with a ¥2,000/t increase in domestic collection prices across all its mills to align with the latest Kanto tender. Consequently, the H2 price at the Utsunomiya plant will be ¥53,000/t delivered to the mill.
With significant gains in the Japanese domestic market, export negotiations are likely to slow down as steel producers require time to absorb the sharp price increases. Prior to the tender, Vietnamese buyers had already secured H2 at $402-403/t cfr, equivalent to around ¥52,500/t fob Japan.
As of 15 January, the Argus H2 fob Japan assessment stood at ¥51,600/t, with the December monthly average at ¥51,075/t fob Japan.
Comments
No comment yet.