Scrap prices in Japan decreased due to price competition in overseas markets. Export offers from the Kanto region fell by USD 19 to USD 331 from the previous month. These offers led to a decline of around USD 6 in the nationwide market as well.
Moreover, purchase prices of shippers in the Kanto region were lower than those of manufacturers.
Despite the end of the fiscal year, scrap production was lower than expected and deliveries remained slow. Therefore, although additional discounts of USD 5 on average were applied towards the end of March, the market did not see a significant revival.
Market participants are currently adopting a wait-and-see attitude rather than being active due to the depreciation of the Japanese currency, the yen.
At the end of March, the price of H2 grade scrap stood at USD 336-343 in the Kanto region and USD 336-346 in the Kansai region. These prices were USD 6-13 USD lower than the end of February. According to SteelRadar data, scrap prices, which have been stable between USD 332-334 since 21 March, were recorded as USD 334 as of 5 April.
Market experts are hesitant to make long-term forecasts for Japanese scrap. It is stated that in order to see an improvement in prices in Japan in April, Yen should appreciate and competitive prices in the market should stabilise.
In addition, it is said that lower than expected scrap production and weakness in exports may prevent prices from rising.
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