TOKYO Japanese scrap export prices started to fall in late November on the falling value of the yen and the rise of the South Korean won.
After three weeks of increases, prices in recent deals to South Korea have fallen by 500 yen ($6) per tonne for H2-grade scrap (a mix of No. 1 and No. 2 heavy melt) to a range of 36,000 to 36,500 yen ($438 to $445) per tonne, while export quotes for H2 scrap to Taiwan have fallen by $5 to $370 per tonne c.f.r.
The declines reflect a weakening yen combined with a strengthening won, traders told AMM sister publication Steel First.
The average domestic price of H2 scrap stood at 23,993 yen ($291) per tonne on Nov. 26, up 67 yen (81 cents) from the previous week, the Japan Ferrous Raw Materials Association said.
But that figure is expected to fall in the coming week as several mini-mills reduced their purchase prices by 500 yen per tonne after normalizing production following a long weekend break.
A version of this article was first published by AMM sister publication Steel First.