The Kanto scrap export tender in Japan has closed with a significant price reduction, down a total of $25/mt as compared to the price level recorded last month. The sharp reduction observed in the Japanese yen-based price was not fully reflected in the dollar-based price since the Japanese yen has gained strength against the US dollar over the past month. On August 9, the exchange rate was at $1 = JPY 146.74. Due to the appreciation of the Japanese yen and the negative signals coming from the Japanese scrap market, a price decrease had been expected in the Kanto tender. Tokyo Steel has also revised its domestic scrap prices once again today, effective as of September 12.
In the Kanto export tender, the highest bid was at JPY 42,720/mt FAS, JPY 5,236/mt lower than last month. Despite the decline achieved in the Japanese yen price, the dollar-based price decreased from $327/mt to $302/mt FAS, taking into account the change in the Japanese yen-US dollar exchange rate. This time, the volume sold under the tender was once more 15,000 mt. The FAS price translates to JPY 43,720/mt FOB or $309/mt FOB, $25/mt lower than last month.
Scrap market prices in the Kanto region are currently at JPY 44,000/mt ($311/mt) FAS on average, JPY 3,500/mt or $13/mt lower than the levels recorded in the same period of last month.
$1 = JPY 141.46