For the second month in a row, the Kanto scrap export tender in Japan has been closed with a price decline, as recorded today, December 11. Downward pressure on Japanese scrap export offers persists in the market as the buyer regions are slowing their purchases ahead of the end of the year. Increased freight has exerted an additional downward impact on FOB prices. Following the Kanto tender, Tokyo Steel has announced its new prices at mostly stable levels compared to those recorded on October 29, but the producer has cut its prices for the Kyushu region.
In the Kanto export tender, the highest bid was at JPY 42,739/mt FAS, JPY 2,441/mt lower than last month. The dollar-based price has decreased from $293/mt to $280/mt FAS, taking exchange rate changes into account. The volume sold in the tender was 15,000 mt. The FAS price translates to JPY 43,739/mt FOB or $287/mt FOB, $12/mt lower than last month, given the volatility of the exchange rate.
Meanwhile, the market prices in the Kanto area are reported to be around JPY 41,000/mt ($268/mt) FAS, JPY 500/mt or $1/mt lower than the prices recorded last month. As a result, the difference between ex-Kanto export prices and local scrap prices has declined to JPY 1,739/mt or $11/mt. In October, this gap between export and domestic scrap prices in Kanto was JPY 3,000/mt or approximately $24/mt, with the yen-dollar exchange rate being at $1 = JPY 154,09.
$1 = JPY 152.63
