While Japanese yen-based prices have moved down in Japan’s Kanto scrap export tender compared to last month, the appreciation of the Japanese yen has meant that the dollar-based equivalent has increased. While market sources already expected the Kanto tender price in the Japanese currency to be lower than last month, the appreciation of the yen is reducing Japanese scrap’s competitive power. Market sources think that there is more room for a further price decline amid the lack of demand for finished steel in Japan or that received from Japan’s traditional scrap buyers.
In the Kanto export tender, the highest bid was at JPY 47,956/mt FAS, JPY 4,212/mt lower than last month. The buyer was Bangladeshi. Despite the decline in the Japanese yen-based price, the dollar-based price increased from $323/mt to $327/mt CFR, taking into account the changes in the Japanese yen-US dollar exchange rate. This time, the volume sold under the tender was similar to the tonnage which changed hands last month, at 15,000 mt. The FAS price translates to JPY 48,956/mt FOB or $334/mt FOB, $5/mt higher than last month.
Market prices in the Kanto region are currently at JPY 47,500/mt ($324/mt) FAS on average, down JPY 4,500/mt or up $2/mt from the levels recorded in the same period last month.
$1 = JPY 146.74