Lower Ferrous Scrap Export Price to Impact Japan Market

Japanese ferrous scrap export price hit averaged FAS 30,115 yen per tonne for H2 grade from Tokyo bay at monthly tender for October shipment by Kanto Tetsugen held on Thursday. The price is 698 yen higher than previous tender on August 10. However, the price, which is slightly lower than local electric furnace steel makers’ purchase price, could impact on local market price.

An exporter won the tender at 30,130 yen per tonne to ship 5,000 tonnes of scrap while another exporter won the tender at 30,100 yen to ship 5,000 tonnes. They will ship the volume by October 31. The total contract volume was 12,000 tonnes lower than previous tender.

Fourteen exporters out of 16 eligible companies submitted 17 bids for the tender. Their total bid was 81,000 tonnes, which was 66,000 tonnes lower than previous tender.

Local electric furnace steel makers pay 31,000-32,500 yen per tonne for H2 grade scrap recently. The price is almost flat from end of August while some of the makers reduced the price marginally.

Japanese ferrous scrap export price is around FOB 31,000 yen per tonne for H2 grade recently for East Asia, which is around 1,500 yen lower than late August level. South Korean steel makers are active to purchase Japanese scrap but their purchase price is lower than Japanese steel makers.