Japan’s Kanto scrap export tender was closed with a price decrease on April 9. Although the Japanese yen price has indicated a drop, the dollar-based price remained relatively stable based on the yen-dollar exchange rate. The gap between local and export prices in the Kanto region has shrunk this month, signaling that domestic demand may provide some support for scrap prices in the coming days.
In the Kanto export tender, the highest bid was at JPY 43,288/mt FAS, JPY 938/mt lower than last month. The dollar-based price has increased very slightly from $297/mt to $298/mt FAS, taking the exchange rate into account. The FAS price translates to JPY 44,288/mt FOB or $306/mt FOB, up $2/mt on US dollar basis.
Meanwhile, the market prices in the Kanto area have increased by JPY 1,000/mt to JPY 41,000/mt ($283/mt) FAS, moving up by $14/mt since then as the yen has appreciated. As a result, the difference between domestic and export scrap prices in the Kanto region has decreased to JPY 2,288/mt or $14/mt, compared to JPY 4,226/mt or $28/mt in February.
$1 = JPY 144.80
