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...