Japanese Ferrous Scrap Export Price Lowers at Latest Tender

Kanto Tetsugen, Tokyo based ferrous scrap dealers’ group, held the latest export tender on Wednesday and the successful bid price was averagely FAS 30,564 yen per tonne for H2 grade of November shipment. The average price decreased by 3,778 yen from the previous tender and became lower than local steel makers’ current purchasing prices due to low export to East Asia. One scrap dealer said regional steel makers might lower their purchasing prices along the export price down. The successful bids totaled 125,000 tonnes, decreasing by 5,500 tonnes from the previous tender.

One trader won the tender at 30,600 yen for 2,500 tonnes while another trader won the tender at 30,560 yen for 5,000 tonnes. The other trader won the tender at 30,550 yen for 5,000 tonnes. They will ship the contracted scrap until December 15. Ten exporters out of 16 eligible exporters submitted 18 bids for the tender while 6 exporters rejected to bid.

Current export contract to East Asia seems around FOB 33,000 yen for H2, decreasing by 2,000 yen from the recent peak in September. Scrap export market price is internationally weakening including U.S. export to East Asia.

Electric furnace steel makers around Tokyo paid 31,500-32,500 yen for H2 and some paid as high as 33,500 yen as of Wednesday. The price has downed by 4,000 yen since September along with weak export market.