The uptrend observed in Japan’s Kanto scrap export tender since July on Japanese yen basis has continued into December. However, due to the depreciation of the Japanese yen against the US dollar, the dollar-based price in the latest deal has softened a little. Over the past month, the Japanese yen has moved from 154.25 against the US dollar to JPY 156.7 as of today, December 10, influencing the dollar price in the latest tender.
In the Kanto export tender, the highest bid was at JPY 45,688/mt ($292/mt) FAS, JPY 728/mt higher than last month, with the dollar-based price down $2/mt from last month’s $294/mt, taking exchange rate changes into account. The FAS price translates to JPY 46,688/mt FOB or $298/mt FOB, stable as compared to last month. The total tonnage of the cargo, which will be shipped to Vietnam, is 15,000 mt.
Meanwhile, the local market prices in the Kanto area are at JPY 43,500/mt ($278/mt) FAS. As a result, the difference between Kanto export and domestic scrap prices has increased to JPY 2,188/mt, from last month’s JPY 2,460/mt, with the gap on US dollar basis now at $14/mt.
As SteelOrbis previously reported, the Tokyo Bay FAS-based prices for H2 grade scrap were by JPY 500/mt late last week to JPY 43,000/mt ($277/mt), with the exchange rate at JPY 155.22 to the dollar on Friday, December 5. The FOB-based export price at the time was JPY 44,000/mt ($283/mt) for the grade in question.
$1 = JPY 156.7
