Japan Ferrous Scrap Export Price Hits Record

Japanese ferrous scrap export price hit record for 7 months in a row when successful bid was FAS 67,750 yen per tonne for H2 grade from Tokyo bay for August shipment at monthly export tender held by Kanto Tetsugen on Wednesday, which was 1,300 yen higher than previous tender. An exporter won the tender to ship 5,000 tonnes of scrap, which was 5,000 tonnes less than previous tender, by end of August. Fourteen exporters out of 16 eligible firms submitted 14 bids and the total bid decreased by 4,000 tonnes to 71,000 tonnes from previous tender. The successful bid was lower than scrap purchase price by local electric furnace steel makers. Offshore buyers are reluctant to buy higher priced Japanese scrap than international level. Kanto Tetsugen sees the price is in line with the international level. The scrap dealers’ group expects the tender’s result could cool domestic market but the market is likely not to decrease.