Japan Ferrous Scrap Export Price Surges to FAS 35,272 Yen/t

Kanto Tetsugen, a ferrous scrap dealers’ group around Tokyo, held the latest export tender for August shipment on Wednesday and the averaged successful bid increased by 1,501 yen to FAS 35,272 yen per tonne for H2 from the previous tender. The price rebounded for the first time in 6 months and reached the level as high as local electric furnace steel makers’ scrap purchasing price. The successful bid totaled 17,000 tonnes, increasing by 1,000 tonnes against July shipment.

An exporter won the tender at 35,350 yen and at 4,000 tonnes. Another exporter won the tender at 35,310 yen shipping 3,000 tonnes and another exporter won at 35,230 yen shipping 10,000 tonnes each by September 15. Thirteen exporters out of 16 eligible exporters submitted 18 bids for the tender while 3 exporters rejected bid. The 9 bids were higher than 35,000 yen. The total bids increased by 11,000 tonnes to 86,000 tonnes from the previous tender in June.

Generally contracted ferrous scrap export price to East Asia is currently FOB 36,000 yen per tonne for H2, increasing by 1,500 yen from the end of June. South Korean electric furnace steel makers are raising their procurement price for domestic ferrous scrap. On the other hand, electric furnaces around Tokyo paid 35,000-36,000 yen for H2 and some paid as high as 36,500 yen as of Wednesday. The price upped by 1,500 yen from the end of June.