Japan Fe Scrap Export Price Stays Higher than Domestic Market

Japanese ferrous scrap export price was determined at average FAS 17,526 yen per tonne for H2 of April shipment at a tender held by Kanto Tetsugen on Wednesday. The award volume totaled record 25,500 tonnes. The average of successful tender price lowered by 5,179 yen compared with the previous tender. However, the averaged export price is still higher than Japanese electric furnaces’ purchasing price by about 1,000 yen. A Japanese scrap dealer said domestic scrap market price might hit bottom if new export contracts are concluded at the latest price level.

Five traders won the Kanto Tetsugen’s tender, one of which won 5,500 tonnes at 17,710 yen per tonne and four of which won each 5,000 tonnes at 17,400-17,550 yen. Total 25,500-tonne scrap is scheduled to be shipped by 15 May. Twelve traders out of 16 eligible firms submitted 13 bids with total 65,500 tonnes, which was lower by 25,500 tonnes than the previous tender.

Newly contracted export price is currently around FOB 18,000 yen per tonne. Japanese trader source analyzes Chinese and Korean ferrous scrap imports are gradually recovering but the demand is not as strong as they offer high price for Japanese scrap. The latest tender seemed to reflect these conditions.