Japan Ferrous Scrap Price Hits Record

Japanese ferrous scrap export price hit record FAS 35,995 yen per tonne for H2 grade at averaged bid in export tender held by Kanto Tetsugen on Tuesday, which increased by 3,047 yen from previous tender. The price hit record under surging offshore market and higher export price to South Korea. The higher export price could impact on local market price around Tokyo.

The bidders got 20,000 tonnes order at the tender. The averaged bid was more than 3,000 yen per tonne higher than previous record of 32,948 yen.

A trader get the 10,000 tonnes order at 36,300 yen per tonne of bid while others got order at 35,840 yen for 10,000 tonnes and at 35,540 yen for 5,000 tonnes respectively. The total export order was 20,000 tonnes, which was shipped by May 15. Fourteen traders out of 15 eligible traders submitted 18 bids for the tender. The 13 bids were more than 35,000 yen per tonne. The total bids decreased by 12,000 tonnes to 96,500 tonnes at the tender from previous tender.

The association said the successful bid was in line with the expectation but the association didn’t expect the more than 36,000 yen per tonne of bid. The higher bids are expected to lift the market price.