Japan Ferrous Scrap Dealers See Price Rebound Sign

Japanese ferrous scrap market price shows sign to rebound. The dealers expect the price would rebound when the export price exceeded domestic price level at export tender in Osaka on Monday under tight supply. A dealer source said the price couldn’t decrease and could rebound depending on export market.

The export price is around FOB 23,300 yen per tonne for H2 grade scrap for Asian market, which is around 1,000 yen lower than the level at the beginning of the month. However, the export price hit FAS 23,150 yen at the tender on Monday, which is higher than recent export transaction.

Electric furnace steel makers around Tokyo pay around 22,000 yen per tonne for H2 while some makers increase the price to encourage the dealers’ shipment. The supply is expected to get tighter when the exporters have to ship scrap for existing orders.

Electric furnace steel makers around Osaka pay 23,000-25,000 yen per tonne for H2 scrap. Some steel makers increased the price only for the month to compete with export price. A trading firm source said the supply is balanced now but could get tight depending on the price.

Japanese ferrous scrap supply is balanced. However, some scrap dealers are still cautious on the optimistic view when the price move is uncertain under lower purchase volume by Chinese buyers, lower long products’ price and slow domestic steel demand.