Another Export Tender Confirms Higher Japan Ferrous Scrap Price

Japanese ferrous scrap export price hit FAS 30,842 yen per tonne for H2 grade at joint tender held by Kanto Tetsugen on Thursday. The price was 750 yen lower than the price at the previous tender held on January 13 but the price is higher than 29,000-30,500 yen of purchase price by local electric furnace steel makers. One dealer source sees higher export price could lift local market price.

The five winner exporters will ship 18,000 tonnes of scrap by April 15. The volume was same as the previous tender.

Ferrous scrap export price could reach FOB 31,500 yen per tonne for H2 grade for South Korea. The demand for Japanese scrap is steady from South Korea while US scrap price decreased and offshore scrap market price is weak.

Local ferrous scrap market price would not decrease around Tokyo due to the higher export price. However, an industry source sees local electric furnaces would keep the lower price when they can secure requirement at the price level.