Despite the very slight rise observed in the Kanto tender earlier this week, Tokyo Steel has not revised its scrap prices. Also, Tokyo Bay FAS-based prices have softened over the past two weeks on yen basis, though the depreciation of the Japanese yen caused a bigger decline in dollar-based quotations. Japan will be celebrating its Mountain Holiday on August 11-16 and will remain out of the market.
As of August 10, Tokyo Bay FAS-based prices for H2 grade scrap have declined on the upper end by JPY 500/mt as compared to the levels recorded on July 28 to JPY 49,500-50,500/mt ($342-349/mt). Despite the very slight change on Japanese yen basis, the yen has depreciated significantly in this period from 139.66 to the dollar to 144.59. Hence, dollar-based prices have declined by $12-16/mt over the past two weeks. This level signals JPY 50,500-51,500/mt ($349-356/mt) FOB for this grade.
Tokyo Bay FAS prices for HS grade scrap are now in the range of JPY 52,500-53,500/mt ($363-370/mt) from JPY 53,000-54,500/mt ($379-390/mt). Prices for shindachi scrap are at JPY 51,000-52,000/mt ($352-360/mt).
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have increased by JPY 1,800/mt from the lower end week on week, coming to the range of JPY 48,800-51,000/mt ($337-352/mt) FOB. The lower end of the range corresponds to deals done by South Korean steelmaker Hyundai Steel, while the upper end is still represented by the Tokyo Bay prices. However, dollar prices have remained stable on the upper end and have dropped by $13/mt on the lower end of the range.
SteelOrbis has learned that Hyundai Steel has bought 15,000 mt of scrap after bidding JPY 48,800/mt ($342/mt - exchange rate JPY 142.66 to the dollar) FOB for Japanese H2 grades. Additionally, a South Korean source reported that this is one third of what was offered by Japanese scrap suppliers.
$1 = JPY 144.59