Japan Ferrous Scrap Export Price Would Increase Slightly for April

Kanto Tetsugen, scrap dealers’ association around Tokyo, will hold the ferrous scrap export tender for April shipping on Thursday this week. The bid volume is scheduled to be 10,000-20,000 tonnes. The averaged successful tender price was FAS 24,490 yen per tonne for H2 for March shipment, increasing by 14.8% from the price for February shipment. Dealers indicate the successful tender price would increase slightly for April shipping from the previous tender, when scrap demand from overseas seems weaker than in February. The ferrous scrap export price increased in Japan when Asian steel makers could collect little Russian scrap due to cold wave, the competitor of Japanese scrap, and demanded Japanese scrap instead. However, ferrous scrap stock became abundant at overseas steel makers currently and Japanese scrap dealers are in wait-and-see stances.The market price of new cutting ferrous scrap increased by 500 yen per tonne from last week in Tokyo. The price is around 19,600 yen per tonne for pressed scrap and around 18,600 yen for scrap without press at dealers’ purchase price including freight.The price increased by 2,000 yen per tonne from the bottom price in early February. Local scrap dealers raised their purchase prices for ferrous scrap following the increase of the export price. Strong scrap demand from domestic integrated steels also supported the market price.Local electric furnaces purchase new cutting scrap at above 26,000 yen per tonne. Integrated steel makers and special steel makers are raising their purchase prices gradually. Local scrap supply is tight and dealers expect the market price to increase further. The new cutting scrap price would maintain strong in the market.