Japan and US Fe Scrap Export Price Rising to South Korea

Japanese and American ferrous scrap prices are continuing to rise to South Korea. Dongkuk Steel, South Korean electric furnace maker, contracted to buy ferrous scrap at FOB around 32,000 yen per tonne for H2 from Japanese ferrous scrap in last week. The contracted price was higher than Hyundai’s contracted price by 500 yen per tonne.

Japanese large dealer source said American major shipper contracted ferrous scrap sales at CFR US$ 360-365 per tonne for no.1 grade with POSCO. American ferrous scrap export price was US$ 339 per tonne to South Korea in the second week in August, which increased by over US$ 20 in this week from last week.

Top ferrous scrap export countries, Japan and USA are reducing ferrous scrap yield. On the other hand, domestic steel makers are increasing operation rate of iron works and purchase volume of ferrous scrap. Large dealer source said each country have no other choice to raise import price of ferrous scrap when it becomes hard to purchase ferrous scrap.

Large dealer source said Japanese and American domestic prices are expected to rise because ferrous scrap export price to East Asia is higher than Japanese and American domestic prices. Especially, American export price is rising to Turkey.