Korea National Tender Lifts Japan Ferrous Scrap Export Price

Japanese ferrous scrap export price hit 27,000 yen per tonne for H2 grade for South Korea. Korean Public Procurement Service purchased Japanese H2 scrap at CFR US$ 320 per tonne to Busan at tender, according to Japanese source. The price represents FOB 27,200-27,300 yen per tonne, which is 300-400 yen higher than export price to Hyundai Steel in the month.

Korean Public Procurement Service purchased 16,000 tonnes of Japanese scrap at the last tender in the year, which was 4,000 tonnes lower than original plan, including H1 grade at around FOB 28,200-28,300 yen per tonne.

Korean Public Procurement Service didn’t purchase US scrap at the tender due to the higher price than Japanese scrap. US scrap export price is around CFR US$ 345 per tonne for no.1 heavy melting scrap for Hyundai Steel last week. US scrap dealers try to secure scrap for export at higher price under tight supply, which increases export offer. Japanese trading firm source expects Korean buyers will shift to Japanese scrap more in January from the higher US scrap.

Korean government started ferrous scrap procurement for stockpile of industrial basic material. The government purchased around 4,000 tonnes of Japanese scrap.