ASIA FERROUS SCRAP: Stronger Japanese yen supports spot prices

A stronger Japanese yen was one of the key factors supporting spot prices in Asian ferrous scrap markets this week, after the haven currency strengthened amid a flight-to-safety by international investors.

The Japanese yen reached 102.48 to $1 on Monday March 9 before easing to 104.33 to $1 on March 12.
Market sources were caught by surprise by the limited falls in the March Kanto Tetsugen auction results, which dipped by just ¥131 ($1.26) per tonne to an average of ¥22,655 per tonne fas from February.
The first lot of 15,000-tonnes of Japanese H2 scrap was bought by a trader at ¥22,970 per tonne fas for the Vietnam market. The second lot of 15,000 tonnes of H2 scrap was bought by another trader at ¥22,340 per tonne fas for the Bangladesh market.
There was also talk among market participants that buyers were purchasing the cargoes to cover short-selling positions.

Demand for Japanese cargoes was muted in the first half of the week before the auction results. Liquidity picked up in the latter...


Paul Lim

March 13, 2020

09:49 GMT