Japan’s latest monthly Kanto scrap export tender was closed today, November 11, with a price increase on Japanese yen basis, equal to a $4/mt increase in the dollar-based price. The depreciation of the Japanese yen has contributed to the increased export price. The Japanese yen moved from 152.63 against the US dollar to JPY 154.25 as November 11. After the increase seen in the Kanto tender, Tokyo Steel has also raised its domestic scrap purchase price for H2 grade scrap, by JPY 500/mt to JPY 39,000-44,000/mt ($253-285/mt), depending on the mill. Market sources report that scrap demand in Asia remains on the low side due to the sluggishness observed in the steel segment.
In the Kanto export tender, the highest bid was at JPY 44,960/mt ($294/mt) FAS, JPY 644/mt higher than last month. The total tonnage of the cargo was 20,000 mt, while the purchaser was a Vietnamese mill. The dollar-based price has moved up by $4/mt from last month’s $269/mt FAS, taking into account the changes in the Japanese yen-US dollar exchange rate. The FAS prices translate to JPY 45,960/mt FOB or $298/mt FOB, up $1/mt compared to last month.
As SteelOrbis previously reported, the Tokyo Bay FAS-based price for H2 grade scrap had increased by JPY 500/mt late last week to JPY 43,000/mt ($281/mt), up $5/mt on dollar basis week on week, with the JPY-US dollar rate at 153.16 on Friday, November 7. The FOB-based export price at that time was JPY 44,000/mt ($287/mt) for the grade in question.
$1 = JPY 154.25