Japan Export Price to Korea Downs for H2, Keeps Flat for New Cutting Scrap

Japanese ferrous scrap export price to South Korea maintains downward. The latest export price to Hyundai Steel of South Korea is around FOB 34,500 yen per tonne for H2 grade, 1,500 yen lower than last week, according to Japanese trader source. The trader said Hyundai Steel seems to have requested price cut when ferrous scrap supply and demand balance is loosing in Japanese bay areas.

On the other hand, new cutting ferrous scrap export price to South Korea keeps the level as high as last week. The latest contracts with SeAH Besteel and POSCO is around CFR 43,000-43,500 yen. Hyundai Steel sets the import price unchanged at around 41,000 yen.

Supply and demand balance is relatively tight for new cutting scrap. The demand keeps steady from Japanese special steel makers. Some of integrated steel makers are also increasing the purchasing volume.

Ferrous scrap dealers around Tokyo are purchasing H2 at around 28,500 yen, H1 at around 30,300 yen and HS at around 32,000 yen. The market price maintains flat with potential decrease. Local demand and supply balance is loose though the price down pace is slowing down along restarts of scrap export transaction. In Osaka, scrap dealers pay around 27,000 yen for H2.