Japan Ferrous Scrap Export Rises by 28.1% in February

Japanese ferrous scrap export price from Tokyo Bay surged by 5,114 yen to average FAS 23,312 yen per tonne for February shipment compared with January shipment, according to Japan Ferrous Raw Materials Association. The export price rises for 2 consecutive months. The latest export price is higher than local electric furnaces’ scrap purchasing price by 5,000 yen per tonne around Tokyo. A dealer source said the export price may affect domestic market price.

The successful tender volume increased by 1,000 tonnes to 21,000 tonnes for February shipment from January shipment, which exceeded 20,000 tonnes for the frist time in two and a half years. Proposal tender volume was 166,500 tonnes, which was the record high.

The successful bids were 24,100 yen per tonne for 5,000 tonnes, 23,100 yen for 10,000 tonnes and 23,010 yen for 6,000 tonnes by 3 bidders. Total 21,000 tonnes will be exported by 15 March. All 15 eligible exporters submitted 29 bids. They offered total 166,500 tonnes.

The purchase price by local electric furnace steel makers is 17,000-19,000 yen per tonne for H2 around Tokyo. The export contract price is FOB around 22,000 yen per tonne from Tokyo Bay. In addition, South Korean and Taiwanese steel makers are increasing the purchasing offers to Japanese ferrous scrap as well as Chinese importers.

The association said domestic supply and demand balance of ferrous scrap may not become loose despite of the output reduction of local electric furnace makers since the export price widely exceeded the domestic market price.