The Kanto scrap export tender in Japan has opened with higher price levels month on month. However, the depreciation of the Japanese yen against the US dollar has prevented dollar-based prices from moving up accordingly, with a very small decline being recorded instead. Meanwhile, foreign buyers of Japanese scrap are now convinced of the strength of international scrap prices. SteelOrbis understands that prices in Asia are firming up and that Japanese sellers are gaining confidence.
The average Kanto tender price reached JPY 55,438/mt ($407/mt) FAS, up by JPY 2,076/mt, though, due to the depreciation of the Japanese yen, the dollar-based price declined by $1/mt from February. The highest bid today, March 9, was JPY 55,680/mt ($408/mt) FAS, SteelOrbis has learned that 3,100 mt of scrap was bought at this price level. The second highest bid was JPY 55,388/mt ($406/mt) FAS, while SteelOrbis has learned that 15,000 mt of scrap was bought at this price.
The Kanto tender FAS prices translate to JPY 56,438/mt or $414/mt FOB. On March 3, the Tokyo Bay FAS-based prices for H2 grade scrap have recovered to JPY 53,000-53,500/mt ($389-392/mt with the exchange rate at 136.34).
Following the Kanto tender, Japanese Tokyo Steel’s general range for H2 grade scrap has moved up to JPY 54,500-55,500/mt ($400-407/mt), depending on the mill. The dollar-based prices have decreased by $1-2/mt compared to the previous levels seen on February 10.
As a result, the SteelOrbis reference prices for ex-Japan H2 scrap have changed from JPY 51,000-54,500/mt ($374-400/mt) FOB to JPY 52,000-56,500/mt ($382-414/mt) FOB week on week. SteelOrbis decided to increase the lower end which was represented by Hyundai Steel’s most recent bid on February 22 by JPY 1,000/mt due to the current positive sentiments. As of today, the upper end of the range is represented by the Kanto tender price.
$1 = JPY 136.44