As anticipated by SteelOrbis, Japan’s Kanto scrap tender has been closed with an increase in prices, with the destination being Bangladesh. It has been known for a while that, with the absence of South Korea and the slower demand coming out of Vietnam, the export markets available for Japanese scrap are fewer, while there has been significant interest in the Kanto tender from the Indian subcontinent. The increase in the export price was a mere $2/mt due to the depreciation of the Japanese yen.
The average Kanto tender price was at JPY 51,316/mt ($349/mt) FAS, indicating a rise of JPY 1,517/mt, increasing by only $2/mt due to the depreciation of the Japanese yen from JPY 143.44 to the dollar to JPY 147.28 since August 9. This month, the winner of the Kanto tender is again Bangladesh, and the tonnage was 15,000 mt, unchanged month on month. Market players think that Bangladeshi buyers’ bid prices were around $405/mt CFR.
The Kanto tender FAS price translates to JPY 52,316/mt ($355/mt) FOB. Meanwhile, it is known that market prices in the Kanto region are currently at JPY 50,000/mt FAS on average. On September 7, Tokyo Bay FAS-based prices for H2 grade scrap are at JPY 48,500-49,500/mt ($329-336/mt with the exchange rate at JPY 147.46 to the dollar).
$1 = JPY 147.28