Kanto Tetsugen’s Ferrous Scrap Export Tender Hits 38,601 yen/t

Japanese ferrous scrap export price hit 38,601 yen per tonne for H2 grade for February shipment at monthly export tender held by Kanto Tetsugen on Friday. The price is around 5,400 yen higher than previous tender and 1,000-2,000 yen higher than purchase price level by local electric furnace steel makers. The higher export price could lift the domestic market.

An exporter won the tender at 38,680 yen per tonne for H2 grade to ship 6,000 tonnes of scrap. Other 2 exporters won the tender at 38,630 yen and 38,470 yen respectively to ship 6,000 tonnes and 5,000 tonnes of scrap each. The total contract volume was 17,000 tonnes at the tender to ship by March 15, which was 1,000 tonnes lower than previous tender.

Fourteen exporters out of 16 eligible companies submitted 19 bids for the tender. The total bid volume was 95,000 tonnes, which was 26,000 tonnes lower than previous tender. Nine bids offered more than 38,000 yen per tonne. The averaged successful bid was 5,431 yen higher than the average price at previous tender.

Local electric furnace steel makers around Tokyo pay 36,000-37,500 yen per tonne for H2 grade scrap. The price keeps the price level since late December. However, Japanese scrap export price reached FOB 38,000-38,500 yen, which is 3,500-4,000 yen higher than the price at end of December. Higher purchase volume by steel makers in China and South Korea lifted the export price level.