Despite the very small price increase in the local currency observed in the Kanto tender in Japan, the depreciation of the Japanese yen has resulted in a decrease in dollar-based prices. On the other hand, it is observed that the traditional buyers at the Kanto tender returned to make bids this time, with the highest bid done by Vietnam. A Japanese source commented, “There was a small expectation of a price increase for the Kanto tender, which did not materialize.”
The average Kanto tender price was at JPY 50,238/mt FAS, indicating an increase merely by JPY 2/mt, and so considered more or less stable on Japanese yen basis. But due to the depreciation of the Japanese yen against the US dollar, the dollar-based prices have declined from $337/mt to $332/mt.
SteelOrbis has learned that, as a result of the tender 15,000 mt of scrap will be sent to Vietnam at JPY 50,286/mt ($333/mt) FAS. The second highest price level recorded in the tender was JPY 50,000/mt ($331/mt) FAS. The destination of this second cargo was not confirmed by the time of publication but it is believed to have been bought by South Korea or Taiwan.
The average Kanto tender FAS price translates to JPY 51,238/mt ($339/mt) FOB. Meanwhile, it is known that market prices in the Kanto region are currently at JPY 50,5000/mt FAS on average. On November 3, Tokyo Bay FAS-based prices for H2 grade scrap were at JPY 50,500/mt ($336/mt), with the Japanese yen exchange rate being at 150.21 to the US dollar.
$1 = JPY 151.07
