The Japanese Kanto export scrap tender has indicated a $43/mt price increase month on month, showing a change in the trend of Kanto tender prices, though the overall sentiments and outlook are not so bright at all.
The Kanto price rise is considered to be “a surprise” by Japanese sources, while the buyer was also a focus of attention. The Kanto scrap export tender prices have been moving down since April this year, while the tender was even cancelled a couple of time due to the lack of buyers. On September 9, the Kanto Tetsugen monthly export tender was closed at the average price of JPY 51,040/mt ($355/mt) FAS, up by JPY 8,979/mt or $43/mt from the August tender, taking into account the exchange rate fluctuations. This price corresponds to JPY 52,040/mt ($362/mt) on FOB basis.
SteelOrbis has learned that 15,000 mt was sold at the abovementioned price level, and that the buyer is Bangladeshi. The total of 15,000 mt sold in the September tender is lower than the previous month’s total of 20,000 mt. It is known that 15,000 mt of last month’s tonnage also went to Bangladesh.
As a result, the reference price for ex-Japan H2 scrap has increased on the upper end by JPY 2,000/mt over the week to JPY 49,000-52,000/mt ($341-361/mt) FOB. Due to the depreciation of the Japanese yen against the US dollar, dollar-based prices have declined by $10/mt on the lower end and are up by $3/mt on the upper end week on week. The lower end of the range is unchanged, though the US dollar price equivalents dropped, taking into account falling bids and overall weak demand in most other Asian importers like South Korea and Vietnam.
* The dollar-based changes were calculated after taking consideration of the Japanese yen-US dollar exchange rate fluctuation week on week.
$1 = JPY 143.66