Posted on 11 Jul 2024
The Kanto Tetsugen monthly scrap export tender settled higher on Wednesday, Kallanish learns. But the increase does little to compensate for the yen’s weakness against the dollar.
In the latest tender, which opened on 10 July, Itochu Metals Corp was awarded 14,000 tonnes of Japanese H2 grade scrap at JPY 52,168/tonne ($323/t) fas. The award price is JPY 804/t higher than last month’s tender. However, the latest Kanto award fas price is in fact around $4/t lower because of the depreciation of the yen against the dollar.
The cargo is destined for Vietnam and would be the equivalent of $365/t cfr. “The price is high but the quality of such cargoes is usually higher than the usual H2 cargoes,” a trader in Vietnam says. Offers for H2 scrap are prevailing at $364-366/t cfr, he adds.
An importer says he has no updated offers because “suppliers are still checking the market”. But he does not expect much change “as the market is still weak and the yen is weaker than the last Kanto tender”. He last heard offers for H2 scrap at $365-368/t cfr Vietnam.
Source:Kallanish
