Japan Ferrous Scrap Export Price Drops to 29,375 yen/t

Japanese ferrous scrap export price decreased to FAS 29,375 yen per tonne for H2 grade for October shipment at export tender held by Kanto Tetsugen on Wednesday, which was 2,565 yen lower than previous tender. The price is still 1,000-1,500 yen higher than purchase price by local electric furnace steel makers around Tokyo. The higher export price could support the local price depending on the ongoing export transactions.

Two exporters won the tender at 29,550 yen per tonne and 29,200 yen respectively to ship 5,000 tonnes each by end of October. Thirteen exporters of eligible 16 companies submitted 14 bids for the tender. The bids were less than 29,000 yen except for the successful bids. The total bids were 74,000 tonnes, which was 1,000 tonnes lower than previous tender.

Local electric furnace steel makers pay 27,000-28,500 yen per tonne for H2 grade scrap around Tokyo, which is almost flat in a week. The export price is around FOB 29,500 yen per tonne in recent transactions, which is around 3,000 yen lower than recent peak in mid-August, while domestic exporters are cautious to accept lower priced export despite of the appetite from the offshore buyers including South Korean users.

Kanto Tetsugen sees the tender result is in line with the recent export market and the higher export price could lift the domestic market price.