Japan Ferrous Scrap Price Hits 30 Months High

Japanese ferrous scrap export price reached to 27,000 yen per tonne for the first time in 2 years and 6 months. Successful bid was averaged FAS 27,300 yen, which increased by 2,030 yen from previous tender, at monthly export tender for October shipment held by Kanto Tetsugen on Tuesday. Taiwanese steel makers increase scrap purchase from Japan after the summer time maintenance outage. Tokyo Steel Manufacturing and other Japanese electric furnace steel makers try to secure scrap under the tight supply. A trader won the tender at 27,350 yen per tonne and another trader won the tender at 27,250 yen for 10,000 tonnes contact each to ship by November 15. The successful bid increased by around 2,000 yen from previous tender, which was the first increase in 4 months. The price was the highest level since March 2004. Eleven traders out of 15 eligible traders submitted 14 bids for the tender while 4 traders refused to join the tender. The 8 bids out of 14 were more than 27,000 yen per tonne. The 14 bids’ volume was total 92,000 tonnes, which increased by 8,000 tonnes from previous tender. Taiwanese steel makers are running out of scrap inventory after summer time outage. They try to secure Japanese scrap aggressively at as high as C&F US$ 274.50 per tonne for H2 grade. Kanto Tetsugen’s chairman Atsushi Watanabe said he expected the price level and the export price will keep the FAS 27,000 yen per tonne level from Tokyo bay. He said electric furnace steel makers around Tokyo would increase the scrap purchase price.