Japan Ferrous Scrap Export is Low to South Korea

Business negotiation of Japanese ferrous scrap export restarted to South Korea. The contracted price decreased by 500 yen to FOB 34,000 yen per tonne at about 30,000-40,000 tonnes to Hyundai Steel. Ferrous scrap export is firm from U.S. to South Korea. However, South Korean steel makers’ interest is low to Japanese ferrous scrap due to high yen rate, according to Japanese large dealer source.

Domestic ferrous scrap market price is downward trend after the last half of July. Purchase price of ferrous scrap decreased by 2,500 yen to 35,500 yen per tonne by Okayama works of Tokyo Steel Manufacturing.

The export price decreased by 500-1,000 yen per tonne to FAS 32,500-33,300 yen for H2 grade in Tokyou bay due to low export volume to overseas and around Osaka. One dealer source said offer price of South Korean steel makers has possible to decrease to FOB 33,000 yen.