Having followed an upward trend since July last year, Japan’s Kanto scrap export tender has closed with yet another price increase in March. The total tonnage of the cargo in the tender was 20,000 mt, for shipment either to Vietnam or Bangladesh. Over the past month, the Japanese yen moved from 153.6 against the US dollar to JPY 158.36 as of today, March 11, causing the change in the dollar-based tender price to be steeper than usual. Along with the rise recorded in the Kanto Tender, major domestic producer Tokyo Steel has also announced an upward price revision of JPY 2,000/mt in its scrap purchase prices. Japanese scrap sellers are supported by the upward push on prices due to the war in the Middle East and also by the recovery of demand in Bangladesh, market sources report.
In the Kanto export tender, the highest bid was at JPY 50,121/mt ($316/mt) FAS, JPY 2,038/mt higher than last month. The dollar-based price has moved up by $3/mt from last month’s $313/mt FAS, taking into account the change in the Japanese yen-US dollar exchange rate. The FAS-based price translates to JPY 51,121/mt FOB or $323/mt FOB, $4/mt higher as compared to last month.
Late last week, the Tokyo Bay FAS-based prices for H2 grade scrap were at JPY 46,500/mt, or $295/mt on dollar basis with the exchange rate standing at JPY 157.85 to the dollar. The FOB-based export price remained at JPY 47,500/mt ($301/mt) for the grade in question.
