Effective January 20, 2016, Platts has launched a weekly price assessment for H2 ferrous scrap FOB Japan, to be assessed weekly on Wednesdays from January 20, 2016.
The launch follows industry feedback that this price is representative of the current spot market in Asia, which sees active spot trade in South Korea.
The assessment published is on a yen/mt FOB Tokyo Bay basis with a typical trade volume of 5,000 mt, delivery in the next 30-60 days from the date of transaction, payment terms LC at sight and cash against documents. A $/mt conversion of this price assessment is also published.
The specifications of H2 grade are defined by Japan Ferrous Raw Materials Association as being sized by guillotine shear, gas cutting, heavy construction machines, or others, to be divided, according to thickness, size, and unit weight. Size of thickness: minimum 3 mm to maximum less than 6 mm, width and length maximum 500 mm and 1,200 mm, respectively, and weight, maximum 1,000 kg.
Trades for Shindachi grade scrap will be normalized to H2 grade scrap. While the main export destination for H2 scrap is South Korea, Platts will reflect the marginal FOB price and will consider in its assessment export trades to other destinations in Asia including Vietnam and Taiwan, netting back CIF data from such Asian destinations using prevailing freight rates and normalizing to FOB Japan.
Platts will publish the H2 values in the ferrous scrap reference price assessment table in the Steel Markets Daily on page 6 and in Platts Metals Alert on pages 1326 and 1362, and to database the value, making it available in data products under the category ST.
Data Sources: Platts | Effective Date: January 20, 2016