Ferrous Scrap Export Price Hits Record in Tokyo, Osaka

Ferrous scrap export price from Tokyo and Osaka exceeded 40,000 yen per tonne for H2 grade at export tenders hitting record. The price increased with higher freight and surging indicative US market. Japanese export price is expected to keep firm after the tender results. Successful bid was averaged record FAS 43,143 yen per tonne from Tokyo bay for H2 grade at export tender for February shipment held by Kanto Tetsugen on Tuesday, which was 5,893 yen higher than previous tender. Three bidders won the tender with 43,900 yen per tonne, 42,800 yen and 42,730 yen bids. They ship 5,000 tonnes each totaling 15,000 tonnes by March 15. Thirteen exporters out of 15 eligible trading firms submitted 15 bids with more than 40,000 yen per tonne. The total bid volume was 78,000 tonnes, which was 35,000 tonnes lower than previous tender. Local electric furnace steel makers around Tokyo increased the ferrous scrap purchase price by 4,000-5,000 yen per tonne in December when the export price increased. A dealer source said offshore buyers try to secure Japanese scrap with better availability under surging US scrap market. Kanto Tetsugen said the tender result was more than expected. The ferrous scrap dealers’ group said the market price is uncertain but the worldwide scrap supply might be short for the demand. At export tender held by Kansai Tetsugen on Tuesday, the successful bid was record FAS 44,100 yen per tonne from Osaka bay for H2 grade, which was 957 yen higher than Tokyo’s tender result. The result could lift the local market price. Tokyo based scrap exporter, Taiwa Trade won the tender to ship 5,000 tonnes of scrap by February 29, which was extended due to Chinese New Year holiday from original February 21. The successful bid was 7,150 yen per tonne higher than previous tender on October 16, 2007. The averaged bid was 41,539 yen, which was 5,548 yen higher than previous tender. Fifteen exporters out of 17 eligible trading firms submitted bids, of which 14 bids were more than 40,000 yen. Local electric furnace steel makers around Osaka pay 41,000-42,000 yen per tonne for H2 grade, which is 2,000 yen lower than indicative export tender price for February shipment. With the higher tender result, the market price could increase above the level.