Higher Export Price to Lift Japan Ferrous Scrap Price

Japanese ferrous scrap export prices hit more than 31,000 yen per tonne for H2 grade at export tenders in Tokyo and Osaka on Friday. The tenders’ results are higher than domestic steel makers’ scrap purchase price. The higher export price is expected to support domestic price increase trend.

The averaged successful bid was FAS 31,211 yen per tonne for H2 grade at tender held by Kanto Tetsugen, which was 3,620 yen higher than previous tender result on November 9. Five exporters won the tender to ship total 19,500 tonnes of scrap by February 15. The exporters submitted bids with 31,110-31,350 yen of prices. The successful tender volume was 1,000 tonnes lower than previous tender.

The scrap export price for East Asia rebounded just after the previous tender. The export price increased to FOB 30,000 yen per tonne or more for South Korea.Local steel makers’ scrap purchase price is 29,500-30,500 yen per tonne for H2 grade around Tokyo. The price would increase due to higher export price at the tender when the makers increase the production.