Japan Ferrous Scrap Export Price Hits FAS 31,592 yen/t, Kanto Tetsugen’s Tender

Japanese ferrous scrap export price hit FAS 31,592 yen per tonne for H2 grade scrap at monthly tender held by Kanto Tetsugen on Friday. The averaged successful bid was 381 yen higher than the level at previous tender on December 12, 2011. The price reflected firm offshore demand despite of weak domestic market. Kanto Tetsugen sees the price is around the level in South Korea and Asian market and supports the domestic price.

An exporter won the tender at the highest 31,800 yen per tonne for 3,000 tonnes of shipment. Other 3 exporters won the tender at 31,800 yen, 31,450 yen and 31,400 yen for 5,000 tonnes of shipment each. They ship the volume by March 15. The total volume of 18,000 tonnes is 1,500 tonnes lower than previous tender.

Thirteen exporters out of 15 eligible companies submitted 20 bids for the tender. The total volume of the bids was 96,000 tonnes. Twelve bids were more than 31,000 yen per tonne and the lowest bid was priced at 29,800 yen.

Japanese scrap export price rebounded for East Asia in the month while the price decreased temporarily in late December. The price is FOB 32,500-33,000 yen per tonne for H2 for South Korean buyers. A dealer source said the buyers shift to Japanese scrap when US scrap price increases.

Local steel makers around Tokyo pay 31,500-33,000 yen per tonne for H2 grade scrap on Friday. The price is weak when the makers have higher scrap inventory. The export tender results are around lower side of the makers’ purchase price. The dealers expect the tender results could support the weak domestic market.