In line with the negative expectations voiced by many players over the past week, Japan’s Kanto scrap tender has been closed with a price decrease. The buyer in the tender was still Bangladesh, in the absence of South Korea and the slower demand received from Japan’s other traditional export markets.
The Kanto tender average price this month was at JPY 50,236/mt ($337/mt) FAS, indicating a decline of JPY 1,080/mt or $12/mt, while the tonnage was again 15,000 mt, unchanged month on month.
The Kanto tender FAS price translates to JPY 51,236/mt ($343/mt) FOB. Meanwhile, it is known that market prices in the Kanto region are currently at JPY 51,000/mt FAS on average. On October 6, Tokyo Bay FAS-based prices for H2 grade scrap were at JPY 51,500/mt ($345/mt) with the Japanese yen exchange rate being at 149.36 to a dollar.
$1 = JPY 149.14