After a recording a slight cut in June following a ten-month upward rally, Japan’s Kanto scrap export tender has recorded another price drop in July. Source believe that the sharp drop seen in the international scrap market provided support for buyers to exert pressure on Japanese scrap prices. This latest price decline has not come as a surprise to the market.
In the July Kanto export tender, the highest bid was at JPY 52,508/mt ($323/mt) FAS, only JPY 1,998/mt lower than last month. The dollar-based price has moved down by $17/mt from last month’s $340/mt FAS, taking into account the change in the exchange rate. The FAS prices translate to JPY 53,508/mt FOB or $329/mt FOB, $17/mt lower as compared to last month.
The Kanto tender price moved up above JPY 54,000/mt FAS in April this year, while it had been increasing since July last year. However, this trend ended in the June Kanto tender which recorded a slight drop in price.
$1 = JPY 160.43
