After declining in the preivous two months, Japan’s Kanto scrap export tender was closed with a price increase today, January 10. The initial expectations were for a stable trend for the Kanto tender. Market sources report that available scrap tonnages in Japan are on the low side and the strong interest shown in the tender supported the price increase.
In the Kanto export tender, the highest bid was at JPY 44,810/mt FAS, JPY 2,071/mt higher than last month. The dollar-based price increased from $280/mt to $284/mt FAS, taking into account changes in the Japanese yen-US dollar exchange rate. The volume sold under the tender is 15,000 mt and the buyer is Bangladeshi, market sources report. The FAS price translates to JPY 45,810/mt FOB or $290/mt FOB, $3/mt higher than last month, including the impact of exchange rate changes.
Meanwhile, the local market prices in the Kanto area are reported to be around JPY 41,000/mt ($260/mt) FAS, unchanged on Japanese yen basis as compared to last month but down by $8/mt on US dollar basis due to the depreciation of the yen. As a result, the difference between the Kanto export and domestic scrap prices has increased to JPY 4,810/mt or $24/mt. In December, the gap between export and domestic scrap prices in Kanto stood at JPY 1,739/mt or approximately $11/mt, with the yen-dollar exchange rate being at $1 = JPY 152.63.
$1 = JPY 157.90
