Japan Ferrous Scrap Export Price Continues to Lower for August

Ferrous scrap export successful bid was average FAS 27,058 yen per tonne for H2 grade at a monthly tender for August shipment held by Kanto Tetsugen on Tuesday, which was 1,012 yen lower than the previous tender. The price decreased for 3 consecutive months and became 1,500-2,000 yen lower than local electric furnace steel makers’ scrap purchase price. A scrap dealer source said local market price may be impacted by export price down. The total bid volume was 13,000 tonnes, lower by 2,000 tonnes than the previous tender.

Three bidders won the tender with the bids at 27,150 yen per tonne, 27,000 yen, and 27,000 yen respectively. Two bidders will ship 5,000 tonnes of scrap and a bidder will ship 3,000 tonnes by September 15. Fourteen exporters out of 16 eligible exporters submitted 17 bids. The total bid volume was 91,000 tonnes, higher by 46,000 tonnes than the previous tender. Three bidders offered above 27,000 yen.

Local electric furnace steel makers purchase H2 at 28,500-29,500 yen per tonne and some pay as high as around 30,000 yen. Some makers currently decreased purchase price by 500 yen.

Newly contracted export price from Tokyo Bay is around FOB 28,000 yen to Taiwan. Overseas importers continue offers for Japanese ferrous scrap. However, a trading firm source said their offer prices are not higher than Japanese market price.