SUBSCRIBER NOTE: Platts to launch weekly Japan H2 ferrous scrap price assessment

Following a period of industry feedback, Platts will launch a weekly price assessment for H2 ferrous scrap FOB Japan, to be assessed weekly on Wednesdays from January 20, 2016.

Market participants have provided feedback to date that this price is representative of the current spot market in Asia, which sees active spot trade in South Korea.

The assessment will be published on a Yen/metric ton 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 US$/mt conversion of this price assessment would also be 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 3mm to maximum less than 6mm, width and length maximum 500mm and 1,200mm respectively, and weight, maximum 1,000kg.

Trades for Shindachi grade scrap will be normalized to H2 grade scrap. While the main export destination for H2 scrap is 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.

In addition, Platts will align the HMS I/II (80:20 blend) CFR East Asia weekly price assessment (SB01130), currently published on Fridays, to Wednesdays effective January 20, 2016.

Please send all questions and feedback to anna.low@platts.com; yoko.manabe@platts.com and pricegroup@platts.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available upon request.