On October 9, Japan’s Kanto scrap export tender was closed with a small price increase on Japanese yen basis, with a $5/mt rise in the dollar-based price. The local Japanese market has followed with similar increases, with Tokyo Steel raising its domestic scrap purchase prices by JPY 1,000/mt or $2/mt for most its yards, only excluding Takamatsu. The depreciation of the Japanese yen from 147.45 against the US dollar to JPY 152.63 on October 9 is limiting increases in dollar-based prices.
In the Kanto export tender, the highest bid was at JPY 44,316/mt ($290/mt) FAS, JPY 2,346/mt higher than last month. The total tonnage of the cargo is 20,000 mt, with the buyer being a Bangladeshi mill. The dollar-based price has moved up by $5/mt from last month’s $285/mt FAS, taking into account the changes in the Japanese yen-US dollar exchange rate. The FAS prices translate to JPY 45,316/mt FOB or $297/mt FOB, up $6/mt as compared to last month.
Meanwhile, the market prices in the Kanto area are at JPY 41,000/mt ($269/mt) FAS, JPY 1,000/mt higher or $2/mt lower than last month. As a result, the difference between the Kanto export price and domestic scrap prices has increased to JPY 3,316/mt or $21/mt.
This week, the Tokyo Bay FAS-based prices for H2 grade scrap have increased by JPY 500/mt week on week to JPY 41,000/mt ($269/mt), down by $2/mt on dollar basis. The FOB-based export price remains at JPY 42,500/mt ($278/mt) for the grade in question, up by $1/mt week on week.
The Tokyo Bay HS grade scrap price has moved up by JPY 500/mt or down by $2/mt week on week to JPY 45,000/mt ($295/mt) FAS, while the shindachi scrap price has remained at JPY 44,500/mt ($291/mt) FAS.
$1 = JPY 152.63
