Japan Ferrous Scrap Export Price Rises Marginally

Japanese ferrous scrap export price was averaged FAS 23,813 yen per tonne for H2 at successful bid for monthly export tender for July shipment held by Kanto Tetsugen on Wednesday, which was 198 yen higher than previous tender. The price is 1,000-1,500 yen higher than domestic steel makers’ purchase price. A scrap dealer source said such higher export price could lift domestic market price.

An exporter won the tender at 24,100 yen per tonne of bid while other 3 exporters won the tender at 23,850 yen, 23,670 yen and 24,630 yen of bids. The exporters will ship 5,000 tonnes each scrap by August 15. The total volume of 20,000 tonnes was 2,000 tonnes lower than previous tender. Fourteen exporters out of eligible 16 companies submitted 20 bids with total 113,500 tonnes of offer, which was 28,000 tonnes lower than previous tender.

Domestic electric furnace steel makers pay 22,000-23,000 yen per tonne for H2 grade scrap, which keep the level since late May. New transaction price of scrap export is FOB 23,500-24,000 yen for South Korea and around 25,000 yen for China for H2 grade. Chinese buyers try to secure Japanese scrap aggressively.

Kanto Tetsugen said the tender result is in line with the market condition. The scrap dealers’ group expects the result could impact on domestic market price depending on ongoing export transactions.