Japan Ferrous Scrap Export Price Hits 31,940 yen/t, Kanto Tetsugen’s Tender

Japanese ferrous scrap export price hit FAS 31,940 yen per tonne for H2 grade at the export tender for September shipment held by Kanto Tetsugen on Tuesday, which was 5,187 yen higher than a month earlier. The price is 2,000-3,000 yen higher than purchase price by local electric furnace steel makers. The higher export price is expected to support local market price.

An exporter won the tender at 31,970 yen per tonne and other export won the tender at 31,910 yen. They ship total 10,000 tonnes of scrap by September 30, which decreased by 5,000 tonnes from previous tender.

Thirteen exporters of 16 eligible companies submitted 15 bids for the tender and 5 bids were more than 31,000 yen per tonne. The total offer was 75,000 tonnes, which was 16,000 tonnes lower than the bids at previous tender.

Domestic electric furnace steel makers pay 28,500-30,000 yen per tonne for H2 grade. The export price is around 31,500 yen per tonne for H2 in recent transactions due to firm demand from buyers in China and South Korea.

Kanto Tetsugen expects domestic scrap price could keep firm when the successful bid was higher than local electric furnace steel makers’ purchase price while the successful bid was more than expected by Kanto Tetsugen.