Japan Ferrous Scrap Export Price Drops to FAS 25,270 yen/t

Japanese ferrous scrap export price from Tokyo decreased for 3 months in a row under summer time output reduction by local makers and slower demand from offshore buyers. The averaged successful bid decreased by 785 yen to FAS 25,270 yen per tonne for H2 at export tender for September shipment held by Kanto Tetsugen on Wednesday. The successful bidders will ship total 20,000 tonnes. The averaged winner price decreased by 1,030 yen per tonne in the 3 months. An exporter won the tender at 25,320 yen and another exporter won the tender at 25,220 yen shipping 11,000 tonnes each by October 15. Eleven exporters out of 15 eligible exporters submitted 14 bids for the tender while 4 exporters reject to bid. The 5 of 14 bids were more than 25,000 yen per tonne. The total volume of the bids decreased by 4,500 tonnes to 84,000 tonnes from tender in July. The chairman Atsushi Watanabe of Kanto Tetsugen said the price is not bad in current market. However, he expects the export price could decrease due to output reduction by local steel makers though the scrap export price was relative high around Tokyo when exporters keep shipping for higher priced order backlog. Ferrous scrap demand is weak due to slow demand from buyers in Taiwan and China along with summer time output reduction by Japanese steel makers. Japanese exporters’ order backlog from Tokyo bay is getting smaller with little new order. Electric furnace steel makers around Tokyo pay around 26,000 yen per tonne for H2 while some pay as high as 27,000 yen.