Asian Steels Raise Ferrous Scrap Bid for Japan

Asian steel makers increase the bid to Japanese ferrous scrap slightly. The price is FOB 18,500-18,900 yen per tonne for H2 grade from South Korean steel makers, which is 300-700 yen higher than a week ago, according to Japanese trading firm source. Chinese steel makers increase the bid to around FOB 19,500 yen.

South Korean steel makers seek more Japanese scrap when the price is cheaper than scrap in South Korea. The move is apparently partly due to Russian export restriction when Russia limits the scrap export to Kamchatka port from April.

The scrap export price indication is more than purchase price by Japanese electric furnace steel makers. The scrap dealers’ sales are slump when domestic makers reduce the purchase volume under major production cut. However, some Japanese scrap industry interests expect the export price indication is not enough to secure large volume of scrap under low level supply.