Japan Ferrous Scrap Export Price Hits First Rise in 2 months

Japanese ferrous scrap export price increased for the first time in 2 months. The price is around FOB 35,500 yen per tonne for H2 grade from Tokyo bay. The price rises when US market recovers and Hyundai Steel of South Korea increased the purchase price. South Korean buyers apparently shift from higher US scrap to relative lower Japanese scrap. The scrap market price around Tokyo bay decreased since April after Hyundai Steel and Tokyo Steel Manufacturing reduced the purchase price. South Korean steel makers reduced purchase volume from Japan after they secured the requirement through purchase from USA and Russia along with Japan. The lower demand from South Korea pressured Japanese market. However, the market changed in late May when international indicator of US scrap market rebounded. US scrap export price could increase more from current C&F US$ 355 per tonne when Turkey buyers restarted the scrap purchase. The export offer price is C&F 365-370 to eastern Asia after Hyundai Steel increased the purchase price. The higher price could lift Japanese scrap market price and Taiwanese buyer contracted Japanese scrap at FOB 35,000 yen per tonne. Hyundai Steel increased the offer price to Japanese scrap to Japanese suppliers at weekly tender on Thursday, which was first increase for 2 and half months. The price was around FOB 35,500 yen per tonne, which was 1,000 yen higher than previous offer, and the firm pays some premium depending on the purchase volume.