Japan Ferrous Scrap Export Tender Price Hits FAS 33,170 yen/t

Japanese ferrous scrap export price hit averaged FAS 33,170 yen per tonne for H2 grade for January shipment at monthly tender held by Kanto Tetsugen on Friday, which was 3,802 yen higher than previous tender in November. The price is same level as purchase price of domestic electric furnace steel makers. The domestic price is expected to increase more when export market increases.

A trader won the tender at 33,300 yen per tonne for 5,000 tonnes shipment. Second exporter won the tender at 33,210 yen for 5,000 tonnes shipment, third exporter won the tender at 33,060 yen for 5,000 tonnes shipment and fourth exporter won the tender at 33,202 yen for 3,000 tonnes shipment. The total contracted shipment is contracted 18,000 tonnes, which is 3,000 tonnes lower than previous tender. They will ship the scrap by February 15.

Fifteen exporters out of 16 eligible companies submitted 24 bids. The total bid volume was 121,000 tonnes as previous tender. Four of the bids offered more than 33,000 yen per tonne.

Local electric furnace steel makers pay 33,000-34,500 yen per tonne for H2 grade around Tokyo. They increased the purchase price by 2,000 yen last week to secure scrap when the export price increases for East Asia.

The export price is FOB 32,500-33,000 yen per tonne for H2 grade, which is 5,000 yen higher than recent bottom in mid-October. South Korean and Taiwanese buyers try to secure Japanese scrap when US scrap export offer increases.