The Kanto scrap export tender in Japan has closed with a price decline today, November 12. The negative sentiment in the Asian scrap market has had an impact on Japanese scrap export prices. Market sources stated that further price declines would not be a surprise, especially given the downward trend observed in prices in China.
In the Kanto export tender, the highest bid was at JPY 45,180/mt FAS, JPY 500/mt lower than last month. The dollar-based prices have decreased from $307/mt to $293/mt FAS, taking into account the changes in the Japanese yen-US dollar exchange rate. The volume sold under the tender was 15,000 mt. The FAS price translates to JPY 46,180/mt FOB or $299/mt FOB, $15/mt lower than last month.
Meanwhile, the market prices in the Kanto area are reported to be around JPY 41,500/mt ($269/mt) FAS, JPY 3,000/mt higher than the price recorded last month. As a result, the difference between the Kanto export and domestic scrap prices has declined to JPY 3,000/mt or $24/mt, with the local Japanese scrap market moving upward this month. In October, the gap between export and domestic scrap prices in Kanto was JPY 7,000/mt or approximately $48/mt, with the yen-dollar exchange rate being at $1 = JPY 148.57.
$1 = JPY 154.09