Japan Ferrous Scrap Export Price Hits 4-Month Low

Japanese ferrous scrap export price decreased to less than 25,000 yen per tonne for H2 grade for East Asia for the first time n 4 months. Successful bid was 24,580 yen at export tender held by Kansai Tetsugen on Friday, which was 6,420 yen lower than the price at the tender on August 21 and 4,795 yen lower than export price at Kanto Tetsugen’s tender on September 9.

An exporter won the tender to ship 5,000 tonnes of scrap by November 20. Five exporters submitted 5 bids for the tender, of which 3 bids were more than 24,000 yen per tonne, while 12 exporters didn’t offer the bid for the tender.

The price hit 4 months low when new export transaction is slow for Chinese market. A trading firm source said South Korean buyers are main buyers for Japanese scrap now when Chinese buyers show little appetite and Korean buyers try reduce the scrap price for Japanese scrap.

Japanese ferrous scrap market price decreased by 2,000-3,500 yen per tonne since late September. The lower export price could impact on the domestic market including potential lower purchase price by Japanese electric furnace steel makers.