After moving up last month, the Kanto scrap export tender in Japan has closed with a price decrease today, February 12. The decline on Japanese yen basis was accompanied by a decline of only $3/mt on US dollar basis.
In the Kanto export tender, the highest bid was at JPY 43,200/mt FAS, JPY 1,610/mt lower than last month. The dollar-based price has decreased from $284/mt to $281/mt FAS, taking into account the change in the Japanese yen-US dollar exchange rate. The FAS price translates to JPY 44,200/mt FOB or $287/mt FOB, $3/mt lower than last month, amid the volatility of the Japanese yen-dollar exchange rate.
Meanwhile, the market prices in the Kanto area are reported to be around JPY 40,000/mt ($261/mt) FAS, JPY 1,000/mt lower on Japanese yen basis as compared to last month but up by $1/mt on US dollar basis since then as the yen has appreciated. As a result, the difference between the Kanto export and domestic scrap prices has decreased to JPY 3,200/mt or $20/mt. In January, this gap between export and domestic scrap prices in Kanto was JPY JPY 4,810/mt or $24/mt, with the yen-dollar exchange rate then at $1 = JPY 157.90.
Tokyo Bay FAS-based prices for H2 grade scrap have also moved down, by JPY 500/mt week on week to JPY 39,500/mt ($257/mt), with a $2/mt fall in the dollar price. This level shows that the FOB price is now at JPY 40,500/mt ($264/mt) for this grade.
Tokyo Bay HS grade scrap prices have increased by JPY 500/mt week on week to JPY 46,000/mt ($299/mt) FAS, $9/mt higher as compared to last week. During the past week, shindachi scrap quotations have remained stable at JPY 45,000/mt ($293/mt) FAS.
$1 = JPY 153.51