Japan Ferrous Scrap Export Price Rises to FAS 26,753 Yen/t

Japanese ferrous scrap export price from Tokyo Bay increased averagely by 2,940 yen to FAS 26,753 yen per tonne for H2 for August shipment at an export tender held by Kanto Tetsugen on Thursday. Local electric furnace steel makers are purchasing ferrous scrap at the price lower by 500-1,000 yen per tonne than the export price. A dealer source said domestic market price is likely to surge more around Tokyo.

The successful bidders decreased by 5,000 tonnes to total 15,000 tonnes. Fifteen exporters out of 16 eligible exporters submitted 18 bids for the tender while one exporter rejected bid. The 9 of 16 bids were more than 27,000 yen per tonne. The total volume of the bids decreased by 22,500 tonnes to 91,000 tonnes from the tender in June.

Electric furnaces’ purchase price is 25,000-26,500 yen per tonne for H2 grade around Tokyo. On the other hand, the export price is around FOB 26,500 yen per tonne. Mainly Taiwanese importers are buying Japanese ferrous scrap. The chairman Atsushi Watanabe of Kanto Tetsugen said local market price could be impacted by higher export tender price.

Japanese ferrous scrap export price reached 273,175 tonnes for January-June from Osaka Bay, which is expected to exceed record 273,663 tonnes in 2006, according to ferrous scrap dealers’ association around Osaka. Heavy scrap export was 223,011 tonnes for January-June. Miscellaneous goods export was 49,664 tonnes and other scrap export was 500 tonnes.

Ferrous scrap export decreased by 12.4% to 39,942 tonnes in June from May. The export increased by 52.9% to 10,630 tonnes for miscellaneous goods while decreased by 24.7% to 29,112 tonnes for heavy scrap.

Domestic ferrous scrap market price is rising. Chinese importers are holding off the buying of Japanese ferrous scrap. However, a large dealer source said South Korean and Taiwanese importers are buying Japanese ferrous scrap at the price higher than domestic price. Japanese ferrous scrap export is expected to keep high level.