Japan Ferrous Scrap Price Drops Slightly at Kanto Tetsugen’s Tender

Japanese ferrous scrap export price decreased by 607 yen to averaged FAS 22,705 yen per tonne from Tokyo bay for H2 grade scrap at monthly tender for March shipment held by Kanto Tetsugen on Thursday. The price is just more than local electric furnace steel makers’ purchase price. However, the dealers are still uncertain if the domestic market would increase when the makers expand the production cut.

Four traders won the tender at 23,150 yen per tonne, 22,850 yen, 22,500 yen and 22,320 yen each. Each trader will ship 5,000 tonnes of scrap by April 15 totaling 20,000 tonnes of scrap, which is 1,000 tonnes lower than previous tender. Thirteen traders out of 16 eligible traders submitted 16 bids for the tender.

Recent export transaction is around FOB 23,000-24,000 yen per tonne while the local makers’ purchase price is 20,000-21,000 yen. The successful bid decreased from a month ago but offshore buyers’ demand increases while the buyers are less interesting in Japanese scrap than before when Japanese scrap price increased to international level.

Kanto Tetsugen sees the tender result reflects current market condition. Without export shipment, the domestic market price could decrease when domestic makers expand the production cut.